Why Union Pacific Stock Zoomed 11% in August

Union Pacific (NYSE: UNP) shares soared 11% in the month of August, according to data provided by S&P Global Market Intelligence. Investor sentiment, in fact, ran high for the entire transportation sector last month driven by macro factors. Investors in Union Pacific appeared to be doubly optimistic thanks to the railroad's recently released strong performance metrics.

Union Pacific stock's performance mirrored that of the Dow Jones Transportation Average in August -- the index took off in the first week of the month and held up firm throughout to hit multi-week highs, with railroad stocks leading the pack.

While airline stocks jumped as air travel volumes hit five-month highs, the gradual reopening of the economy lifted hopes for rail companies given the significant role they play in moving goods across the United States. Economic data further buoyed investor sentiment, with jobless claims in the first week of August dropping to their weekly lowest since mid-March.

Source Fool.com