Travel Shares Rally as Fed Meets
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- Delta rallied more than 6% after raising revenue guidance for the current quarter, while other airlines also posted gains.
- Norwegian Cruise Line Holdings climbed over 2% as travel stocks recovered from recent losses tied to the U.S.-Israeli attack on Iran and rising energy prices, with Expedia Group also jumping more than 4%.
- Fed began its two‑day monetary‑policy meeting on Tuesday; traders expect rates to stay unchanged on Wednesday and rate‑future data show expectations for one 25‑basis‑point cut later in the year, down from two before the war.
- Ross Mayfield warned that if the Fed treats the oil shock as inflationary, it could adopt a more hawkish stance, while noting the best‑case scenario is the Fed monitoring the situation without deviating from past practice.
- Occidental rose about 1% tracking higher crude prices near $100 a barrel, while the S&P 500 energy sector index gained 1.02% and the overall index rose 0.25% to 6,716.09 points.
- Uber surged 4.2% after announcing robotaxi rollout plans in 28 cities next year.
- Blackstone rose 4.6% as financials stocks rallied, with Apollo Global up 5.3% and KKR up 3.3%, lifting the S&P 500 financials sector 0.5%.
Why it matters: Airlines, cruise lines and online travel firms drove the market higher, offsetting broader inflation worries tied to $100‑a‑barrel oil, while the Fed’s two‑day meeting could cement a cautious stance that would keep rates steady and protect the rally, buoying financial stocks such as Blackstone and Apollo.
