Travel stocks traded lower on Monday as anxiety over a recession and higher interest rates swept over the sector.
A poll conducted by Financial Times of economists indicated that 70% expect the U.S. economy to slip into a recession next year, which added to the existing concerns that consumer spending could wilt this summer and into fall.
Cruise line stocks Carnival (CCL -7.9%), Norwegian Cruise Line Holdings (NCLH -8.6%), and Royal Caribbean (RCL -6.3%) were all notably lower.
Resort and casino stocks Playa Hotels & Resorts (PLYA -7.0%), Golden Entertainment (GDEN -5.8%), Red Rock Resorts (RRR -7.0%), Boyd Gaming (BYD -5.7%), Bally’s (BALY -6.7%), and MGM Resorts (MGM -6.4%) also caught sell orders early on Monday.
Travel service stocks also fell hard, including Trip.com (NASDAQ:TCOM -7.0%), TripAdvisor (TRIP -5.1%), Booking Holdings (BKNG -6.6%), and Airbnb (ABNB -6.5%).
Lodging stocks InterContinental Hotels Group (IHG -6.9%), Marriott International (MAR -4.8%), and Hyatt Hotels (H -5.2%) also were in negative territory.
Airline stocks were led lower by sharp drops for Gol Linhas (GOL -11.1%), Azul S.A. (AZUL -10.4%), and Volaris (VLRS -7.0%).
Read the morning update on the broad market.