Industrial and Transportation Shares Drop Amid Concerns of Global Recession

The past week saw several central banks, including the Bank of England, the Swiss Central Bank, and the Norwegian Central Bank, hike rates, leading some experts to warn of a globally coordinated rate-hike campaign. Quincy Krosby, the chief global strategist at brokerage LPL Financial, commented on the issue, stating that some central banks are even using the same language. This concern caused industrial and transportation companies’ shares to drop as another wave of rate hikes could induce a global recession.

Transportation Secretary Pete Buttigieg warned that air travel could face potential disruption before the deadline for retrofitting equipment to avoid interference from 5G wireless signals. Meanwhile, Siemens Energy announced the withdrawal of its fiscal 2023 profit guidance after components in its wind turbines manufactured by its unit Siemens Gamesa wore out faster than expected. Shares in the maker of sustainable-energy equipment saw a sharp decline.

Mixed earnings from economic bellwether FedEx earlier in the week intensified concerns about growth outlook, according to Krosby from LPL Financial.

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