Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) swung lower on Wednesday amid concerns about consumer discretionary spending and with investors eyeing longer-term Treasury yields that continue to track higher. While the two companies are better insulated from tariff costs than many retailers, the economic backdrop created by the Trump Administration's policies is working against them.

Notably, Treasury yields moved higher this week for maturities stretching from one year to thirty years, which impacts mortgage rates and loan rates for consumers looking at home improvement projects.

The jump in Treasury yields this week will quickly push up borrowing costs across the financial system, according to economists. Higher rates also increase the risk of a recession in the U.S., which would dampen investor enthusiasm for home improvement stocks. While the Federal Reserve can take swift action on short-term interest rates, the central bank has less impact on the longer end of the yield curve.

Shares of Home Depot (NYSE:HD) fell 2.2% in early trading on Wednesday and are down 14% over the last six weeks. Lowe's Companies (NYSE:LOW) swung 1.8% lower at the open and is down 16% over the last six weeks. Both home improvement stocks have a Seeking Alpha Quant Rating of Hold.