Why Cruise Stocks Sank on Monday
By now, you've heard the (bad) news: The yield curve just inverted again, fears of recession are on the rise, and to top it all off, after inflation hit a 41-year high last week, investors are beginning to worry that the Federal Reserve could raise interest rates as much as 0.75% in its next meeting.
The stock market has tumbled in response, with the Dow down 2.5% as of 11:15 a.m. ET this morning and the S&P 500 falling even harder -- down 3.4%. Cruise stocks number among today's casualties, with Royal Caribbean (NYSE: RCL) shares down 8.3%, Carnival Corporation (NYSE: CCL) falling 9.5%, and Norwegian Cruise Line Holdings (NYSE: NCLH) leading the whole sector lower with an 11.2% decline.
What do higher interest rates, recession fears, and the "yield curve" have to do with cruise line stocks? Let's break it down step by step.
Source Fool.com
