Why Travel and Entertainment Stocks Dove on Wednesday
Shares of travel and entertainment stocks got hammered Wednesday as the coronavirus case growth continued to accelerate in the U.S., and news about the struggling global economy also doused hopes for a rapid recovery.
Florida reported more than 5,500 new coronavirus cases this morning, a new daily record, as a number of states are seeing new cases spike to an all-time high. At the same time, New York, New Jersey, and Connecticut -- the first U.S. epicenter of the outbreak -- said they would require visitors from states with severe outbreaks to quarantine for two weeks, cooling off hopes for increased tourism. The European Union also said that it may ban travel from the U.S. when it reopens its borders on July 1.
This news makes a quick economic recovery unlikely, and travel is the most sensitive sector as the industry won't return to full health until people feel safe again. The more the pandemic spreads, the less likely that will be.
Source Fool.com
