SIX - Here's Why Six Flags Stock Fell 20% Last Month
Shares of theme-park company Six Flags Entertainment (NYSE: SIX) fell 20.1% in September, according to data provided by S&P Global Market Intelligence . There was little company-specific news during the month, which is why it barely moved for much of September. However, late in the month, inflation fears rose, and Six Flags stock consequently fell. Here's why inflation is a big deal for this company.
According to the U.S. Bureau of Labor Statistics, inflation for the year leading up to August was 8.3%. This number was reported on Sept. 13, and Six Flags' stock moved little then. Perhaps it was because these inflation numbers look backwards and don't really tell where things are headed.
However, on Sept. 21, Federal Reserve chairman Jerome Powell announced that it was raising interest rates by 0.75% -- a historically aggressive raise -- to get inflation under control. The magnitude of this hike evoked a reaction from the market because it suggests inflation rages on and is difficult to tame.
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Here's Why Six Flags Stock Fell 20% Last Month