Why Consumer Discretionary Stocks Fell on Consumer Spending Worries
The stock market had a rough start to the week Monday -- the S&P 500 fell 0.8% while the Nasdaq Composite was down 1%. Investors were worried about a recession, rising interest rates, and even trade disruptions.
Some of the stocks hardest hit were related to future consumer spending. MGM Resorts (NYSE: MGM) fell as much as 5.4% in trading, Carnival (NYSE: CCL) was down 9.3%, and Skillz (NYSE: SKLZ) dropped 10% at its low today. The stocks were down 3.9%, 5.9%, and 8.3%, respectively, at the close of trading.
JPMorgan CEO Jamie Dimon said today that the U.S. will likely fall into a recession in 2023, just the latest business leader who sees gloom ahead. If there is indeed a recession it's likely the job market will get worse, cutting down on discretionary consumer spending on things like casinos, cruises, and video games. That's why these stocks were hit hard today.
Source Fool.com
