US consumer discretionary stocks are underperforming the broader market as inflationary pressure and a softening job market squeeze purchasing power. Investment analysts are flagging this as a red signal—if AI-driven job displacement accelerates through 2026, the weakness could intensify. The combination of sticky prices, labor market cooling, and automation risks creates a challenging backdrop for consumer spending. This matters for crypto: historically, risk-off sentiment in traditional equity markets often flows into alternative asset volatility. Investors watching macro headwinds should factor in potential contagion effects as consumer confidence deteriorates.