Lowe's and Home Depot led the sector, with both home-improvement giants seeing share prices climb by at least 1%. The optimism stems from Waller’s indication that the central bank may hold off on restrictive monetary policy, pending a clearer picture of inflationary trends.

Conversely, the luxury sector hit a rough patch as escalating tensions between the U.S. and Iran rattled confidence in key markets, including China and the Middle East. LVMH shares dipped to a six-year low, dragging down competitors such as Hermes, Kering, and EssilorLuxottica. Amidst this volatility, the Miami real estate market remains an outlier; luxury home prices in the region jumped 18% in July, marking the sharpest increase among the 50 largest U.S. metropolitan areas. Meanwhile, Victoria's Secret signaled a successful pivot in its operations, raising its annual growth forecast as the company’s ongoing turnaround strategy gains traction.