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Investing.com — Travel stocks were under pressure on Friday on worries about a spending pullback amid higher-than-expected inflation just as summer travel season tries to gain momentum.
Shares of online planning tool Booking Holdings Inc (NASDAQ:BKNG) fell 6.6%, Expedia Inc (NASDAQ:EXPE) fell 5%, and Airbnb Inc (NASDAQ:ABNB) was down 4.8%. Goldman Sachs recently cut its price targets on all three citing a more conservative outlook on the online travel sector and a higher probability of a weaker macro environment.
Even shares of hotel giant Marriott International Inc (NASDAQ:MAR) traded down 3.8%. The S&P 500 was down 2.5% on Friday amid a broad market rout after the inflation reading for May stoked concerns that the Federal Reserve would get more aggressive in trying to combat rising prices.
A possible bright side to travel stocks: An official in the Biden administration told CNN on Friday that the Centers for Disease Control and Prevention is expected to end the requirement that travelers entering the United States from abroad test negative for Covid-19. The restriction ends for air travelers at midnight Sunday. Travel industry executives have been pressing the administration to lift the restriction to encourage tourism.
CNN reported that the CDC will reassess its decision in 90 days.
