Carnival Corp CCL, Norwegian Cruise Line Holdings Ltd NCLH and Royal Caribbean Cruises Ltd RCL shares are all trading lower Friday afternoon as travel stocks fall on recession fears.
Travel companies are also trading lower on continued downward momentum following Wednesday's Fed decision. The Fed raised rates by 50 bps and increased its federal funds rate projections while lowering its GDP outlook. These catalysts could negatively impact spending on non-essential products.
What Happened?
The broader market is sliding again Friday after the Federal Reserve on Wednesday raised its target range for the federal funds rate by 0.5%, bringing the new target up to a range of 4.25% to 4.5%.
The Fed will continue to reduce its holdings of Treasury securities, agency debt and agency mortgage-backed securities on a monthly basis. The committee anticipates that ongoing increases in the target range will be appropriate to return inflation to its 2% goal over time...Read More
According to data from Benzinga Pro:
- CCL is trading lower by 3.29% to $8.36
- NCLH is lower by 3.32% to $14.27
- RCL is lower by 2.93% to $53.04
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