The Temple & Webster Group Ltd (ASX: TPW) share price finished the day almost 11% higher at $3.29 on Wednesday.
Investors bid up shares in the online homewares retailer on no news. Nonetheless, today's gain is welcome following a period of heavy downside for the company.
The Temple and Webster share price is now trading almost 70% lower this year to date.
In broader market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) also closed 1.18% higher today.
Let's see what might have been going on today.
Temple & Webster shares spike on Wednesday
Investors were constructive on cyclical shares today with the Consumer Discretionary benchmark catching a bid.
A good chunk of the index finished either flat or in the green. For Temple and Webster, investors bid the company up on a volume more than 216% of the share's four-week trading average.
With no news coming from the company, it could be that investors were bottom fishing in the consumer discretionary space in search of bargains.
Cyclical shares such as Temple & Webster have been beaten down in 2022 amid a broad market selloff and softening economic data from the US.
Recently, the US consumer confidence index fell to a 16-month low, as concerns over inflation and economic recession loom.
Recent data needs more clarification
Meanwhile, the Westpac-Melbourne Institute Index of Consumer Sentiment fell 3% in July, down to 83.8 from 86.4 in June.
The index has slipped almost 20% from December and has kept declining every month to July, Westpac found.
However, consumer spending has "likely continued to increase" in Australia during FY22 into FY23, according to Focus Economics.
This is "supported by accumulated savings, as suggested by a tight labor market in April and May and retail sales growth in April," it says.
"The economy looks set for a healthy expansion this year. Solid labor market dynamics, pent-up spending and faster wage growth should feed household spending."
So, despite underlying fears of inflation or recession, investors look to be handling Temple & Webster shares accordingly.
