Why Travel-Related Stocks Are On The Move Today

Shares of several travel-related names including Carnival Corp CCL, Royal Caribbean Cruises Ltd RCL and Expedia Group Inc EXPE are trading higher Thursday after CPI data showed signs of slowing inflation, which has created optimism that the Federal Reserve could rein in tightening.

What To Know: The consumer price index rose 6.5% in December, down from 7.1% in November, according to data the Labor Department reported on Thursday. The December CPI reading was in line with average economist estimates.

Core inflation, which excludes volatile food and energy prices, was up 5.7% last month, in line with average economist estimates.

After stifling markets with four consecutive 0.75% rate hikes, the Fed opted for a less aggressive 0.5% hike at its last meeting. Several experts believe Thursday's improving data sets the stage for the central bank to pause or lower its pace of rate hikes at its next meeting.

Check This Out: Hike, Pause, Pivot Or Cut? 4 Experts On The Fed's Next Interest Rate Move As CPI Data Shows Inflation 'Weakening'

Travel-related names are trading higher on optimism surrounding the Fed's next move. If the Fed pauses or pivots, it could lead to less of a negative impact on the economy than most are currently anticipating, which could free up consumer spending.

CCL, RCL, EXPE Price Action: At the time of writing, Carnival was up 4.11%, Royal Caribbean was up 5.44% and Expedia was up 4.13%.

Photo: courtesy of Carnival.