Why UPS Stock Is Falling Today
The latest government inflation report did little to ease fears that prices are spiraling out of control, raising new questions about where the economy is going from here. Investors responded by selling shares of companies that would be impacted if we end up in a recession, sending United Parcel Service (NYSE: UPS) down more than 2% as of midday Tuesday.
UPS' massive transportation network came in handy during the pandemic, when the economy went nearly entirely online and deliveries were prioritized, but investors are beginning to worry about whether or not demand for that network can be sustained. There are real worries that inflation, and the Federal Reserve's aggressive effort to fight it, will lead to an economic slowdown.
The latest data added fuel to those fears. The Bureau of Labor Statistics' monthly Consumer Price Index showed that prices rose 8.3% year over year in August and increased slightly from July. Economists had expected an 8.1% year-over-year gain and a slight decline from the previous month.
Source Fool.com
