Travel-centric stocks took a dive in midday trading Thursday, enough to knock the Dow Jones Transportation Average
into correction territory, as concerns over a renewed increase in COVID-19 cases and weak economic outlook saps investors sentiment. The Dow transports dropped 5.7% with all 20 components losing ground, and has now tumbled 10.1% in three days, after closing Monday at a 3 1/2-month high. Many on Wall Street view declines of 10% or more from a significant peak as a correction. The shares of five of the index’s components were down double digits: Avis Budget Group Inc.
tumbled 13.9%, United Airlines Holdings Inc.
dropped 12.8%, American Airlines Group Inc.
sank 12.5%, Alaska Air Group Inc.
fell 11.7% and Delta Air Lines Inc.
declined 10.5%. Although not in the index, shares of Royal Caribbean Cruises Ltd.
slid 9.8% and Carnival Corp.
lost 13.8%. Meanwhile, the Dow Jones Industrial Average
tumbled 1,171 points, or 4.3%, and have lost 6.4% in three days.