Transportation shares, especially trucking and railroad stocks, make up the worst-performing group in the U.S. in the past week amid growing concern that aggressive interest rate hikes by the Federal Reserve and surging inflation will curb consumer spending. As a result, companies responsible for moving and delivering goods may see demand drop at a time when soaring oil prices squeeze margins.
On Friday, Stephens analyst Jack Atkins said he saw risks to freight demand later this year and into 2023, as Fed rate hikes remove liquidity from the economy and spending on goods likely returns to historical levels with Covid restrictions easing.
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