- Carnival (CCL) stock is falling as macro factors affect the market.
- This includes entry into a bear market with increasing inflation.
- Recession worries and rising interest rates are also complicating the picture.
Carnival (NYSE:CCL) stock is falling hard on Thursday as investors react to the ongoing effects of inflation and increasing interest rates on the economy.
There’s no getting around the fact that the market is going into a bear market. That has many investors fearful that a recession is on the way. This could see many investments wiped and traders fleeing some of the most vulnerable stocks.
Carnival is among those in the red today and it makes sense why shares are slipping. The cruise company has already been struggling throughout the pandemic over the last two years. Now, the hope for increased business this year seems to be evaporating as higher prices weigh on consumers.
While the Federal Reserve has been trying to combat inflation with higher interest rates, it hasn’t worked yet. Today saw the Fed make its biggest move yet with a 0.75% increase. That’s the largest jump in interest rates from the Fed since 1994.
CCL stock is far from the only travel stock being affected by these problems. Airline stocks are falling as well. However, airlines are also dealing with their own set of problems, such as disruptions that could make air travel unreliable this summer.
All of this has Carnival seeing heavy trading as of Thursday afternoon. More than 46 million shares of the stock are on the move as of this writing. The company’s daily average trading volume is roughly 38.1 million shares.
CCL stock is down 10% as of Thursday afternoon.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.