Why Are Airline and Cruise Line Stocks Getting Crushed by Tariffs?
The stock market was experiencing its biggest one-day declines in several years on Thursday in the wake of President Trump's tariff announcements. Not only will the tariffs affect over 180 countries around the world, but for the most part, they were also far worse than experts had anticipated.As a result, the S&P 500 was lower by 4.3% as of 2:30 p.m. ET today. The tech-heavy Nasdaq was down 5.5%, and the small-cap Russell 2000 index fell by 6% and is now in bear market territory because it is over 20% below its previous high.Some sectors of the stock market were performing even worse, and one was travel stocks. Southwest Airlines (NYSE: LUV) had fallen by 9% on the tariff news, just to name one example of an airline stock being beaten down. And cruise operators were hit even harder, with industry leaders Royal Caribbean (NYSE: RCL) and Carnival Corporation (NYSE: CCL) down by 9.3% and 12.2%, respectively.Continue reading
The stock market was experiencing its biggest one-day declines in several years on Thursday in the wake of President Trump's tariff announcements. Not only will the tariffs affect over 180 countries around the world, but for the most part, they were also far worse than experts had anticipated.
As a result, the S&P 500 was lower by 4.3% as of 2:30 p.m. ET today. The tech-heavy Nasdaq was down 5.5%, and the small-cap Russell 2000 index fell by 6% and is now in bear market territory because it is over 20% below its previous high.
Some sectors of the stock market were performing even worse, and one was travel stocks. Southwest Airlines (NYSE: LUV) had fallen by 9% on the tariff news, just to name one example of an airline stock being beaten down. And cruise operators were hit even harder, with industry leaders Royal Caribbean (NYSE: RCL) and Carnival Corporation (NYSE: CCL) down by 9.3% and 12.2%, respectively.
