Why Carnival, Royal Caribbean, and Norwegian Cruise Lines Plunged in June

June was a brutal month for Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Lines (NYSE: NCLH). The companies' shares fell by 37.7%, 39.9%, and 30.5%, respectively, according to data from S&P Global Market Intelligence.

Admittedly, it was a difficult month for stocks in general. Early on, it featured a worse-than-expected inflation report. Then, recession fears intensified after the Federal Reserve hiked its benchmark federal funds rate by 75 basis points as part of its effort to get inflation back in check. However, amid a falling market, economically sensitive stocks such as cyclicals and consumer discretionary names took the biggest hits. As part of the discretionary group, cruise lines did even worse, as they will need a strong economy just to dig themselves out from under the massive piles of high-interest-rate debt they incurred to survive the earlier phases of the pandemic.

While Carnival reported improving revenue, bookings, and occupancy during the month, it wasn't enough to offset investors' broader macroeconomic fears.

Source Fool.com