U.S. consumer spending remains resilient despite rising prices, but Wall Street is growing wary that the trend may not last. According to Sina Finance, retail sales and personal consumption expenditures continue to grow, while consumer borrowing is also rising.

At the same time, persistently high oil prices and rising U.S. Treasury yields have hurt consumer sentiment. The University of Michigan's preliminary consumer sentiment index fell to a five-month low on Friday, while inflation expectations rose further.

Accuvest Global Advisors Chief Investment Officer Eric Clark said consumers cannot keep absorbing higher prices forever. He said wage growth usually fails to keep pace with inflation, forcing consumers to make trade-offs.

Investors and strategists are now focusing on consumer conditions as earnings season approaches. Large banks will soon report results, with credit card spending data in focus, while retailers' holiday sales guidance will also be closely watched.

Bank of America national investment strategist Tom Hainlin said he is looking for signs of consumer fatigue. He asked whether rising food and gasoline prices will eventually overwhelm consumers.

Analysts have continued to cut earnings expectations for the consumer discretionary and consumer staples sectors. According to compiled data, investors now expect negative earnings growth for both sectors, the first such reading since late 2024.