The Federal Reserve is slowly edging towards policy normalisation. The prospect of rising interest rates is usually beneficial for discretionary consumer purchases. Why? Because rising employment means that consumers feel more confident to make non-essential purchases. Nike has some strong seasonals as we come into August.
Over the last 15 years, Nike has risen a total of 13 times in 15 years between August 02 and September 30 with an average return of +7.78%. The largest gain was in 2020 with a 27.67% gain as Nike made a very successful pivot to direct selling to customers online. This strategy was a great one for the COVID-19 pandemic.
Major Trade Risks: Any negative supply chain issues could weigh on Nike Stock.