Home Depot shares rose Thursday following the bipartisan passage of the 21st Century ROAD to Housing Act. Analysts expect the legislation to stimulate the home renovation market.
The bill encourages homeowners to renovate existing properties instead of relocating during periods of high mortgage rates. This shift provides a significant tailwind for the retailer amid a slow housing market.
The news follows recent headwinds for the company, including a stock downgrade and sluggish comparable store sales growth. Investors anticipate the new legislation will sustain long-term demand for Home Depot products and services.