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Transportation stocks fall in US amid interest rate hikes and inflation

By Shubhangi Mathur - Apr 08, 2022, 02:51 AM ET
Last Updated - Jul 18, 2023, 05:27 PM EDT
Transportation stocks fall in US amid interest rate hikes and inflation

• Transport companies may also bear the brunt of surging fuel prices

Transportation stocks in the U.S. reported low performance in the last week due to interest rate hikes by the Fed and soaring inflation.

The Dow Jones Transportation Average ($DOWT) has fallen by 7.4% since last Tuesday (March 29), compared with a -1.1% decline in the S&P 500 Index, according to Barchart.

Transport companies, which may experience drop in demand, are also expected to bear the brunt of surging fuel prices since Russia’s invasion of Ukraine in February.

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“If transports are underperforming, investors are inferring that consumer orders will likely be slowing as well, due to supply disruptions, rising inflation, and inverting yield curves,” said CFRA analysts, reported Barchart.

Stock of transport companies including JB Hunt Transport Services, Matson, Old Dominion Freight Line, Ryder System, and Landstar System have fallen the most.

Picture Credits: MarketWatch

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