U.S. Stocks Decline Amid Rising Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2026
0mins
Source: NASDAQ.COM
- Oil Price Surge Impacts Markets: Crude oil prices rose over 9% due to escalating tensions in the Middle East, briefly surpassing $100 per barrel, leading to a 0.9% drop in the S&P 500 and a 1.2% decline in the Dow Jones, reflecting market concerns over inflation and economic slowdown.
- Weak Economic Data: The U.S. economy saw a loss of 92,000 jobs in February, with the unemployment rate unexpectedly rising by 0.1% to 4.4%, and January retail sales falling by 0.2% month-over-month, intensifying investor worries about the economic outlook and further pressuring stock performance.
- Strong Earnings Reports: Despite the overall market decline, over 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating robust corporate fundamentals that may support future market rebounds.
- Airline Stocks Hit Hard: The surge in oil prices has pressured airline profits, with United Airlines Holdings down over 6%, and American Airlines Group and Alaska Air Group both falling more than 5%, highlighting the negative impact of high oil prices on the airline industry.
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Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 46.590
Low
63.00
Averages
71.10
High
80.00
Current: 46.590
Low
63.00
Averages
71.10
High
80.00
About ALK
Alaska Air Group, Inc. is engaged in operating airlines. The Company operates through its subsidiaries Alaska Airlines, Inc., Hawaiian Holdings, Inc., Horizon Air Industries, Inc., and McGee Air Services. The Company's segments include Alaska Airlines, Hawaiian Airlines, and Regional. The Alaska Airlines segment includes scheduled air transportation of passengers and cargo on Boeing 737 (B737), Boeing 787 (B787), Boeing 717 (B717), Airbus A330 (A330), Airbus A321neo (A321neo), and others, throughout North America, Latin America, Asia, and the Pacific. The Regional segment includes Horizon's and other third-party carriers scheduled air transportation on E175 jet aircraft for passengers under capacity purchase agreements (CPAs). The Company serves more than 140 destinations throughout North America, Central America, Asia and across the Pacific. The Company provides freight and mail services (cargo) using both freighter aircraft and the bellies of its passenger aircraft.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Internet Service Upgrade: American Airlines plans to install Starlink internet service on over 500 narrow-body aircraft starting in early 2027, aiming to enhance customer experience and address competitive pressures, despite its stock having dropped 37% over the past five years.
- Intensifying Market Competition: With United Airlines already equipping over 300 planes with Starlink and other airlines like Southwest and Alaska Air Group quickly following suit, those airlines that can deploy this technology the fastest will gain a significant competitive edge.
- Customer Experience Improvement: While good internet service won't solve all of American Airlines' issues, this upgrade could help attract higher-paying customers as consumers become increasingly sensitive to passenger experience, thereby enhancing customer loyalty.
- Need for Strategic Transformation: Although the introduction of Starlink is a significant step towards modernization, analysts believe it is not enough to bring American Airlines on par with competitors like Delta and United, indicating that the company must invest further in technology to keep pace with consumer demands.
See More
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- Market Competitive Edge: With American Airlines adopting Starlink, competitors like United Airlines already have over 300 planes equipped with the service, and the rapid rollout will provide American with a significant competitive advantage, especially in customer choice.
- Stock Price Context: Over the past five years, American Airlines' stock has dropped more than 37%, and while the introduction of Starlink won't solve all issues, improving internet service could enhance passenger satisfaction and potentially impact company performance positively.
- Initial Strategic Shift: This technological upgrade is seen as an important step for American Airlines in enhancing customer loyalty and attracting higher-paying customers, although further investment is needed to keep pace with industry modernization.
See More
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- Fuel Price Impact: Alaska's management anticipates that higher fuel costs will reduce earnings per share (EPS) by $0.70 in Q1 and over $3 in Q2, highlighting the significant pressure from soaring fuel prices.
- Strong Demand Continuity: Southwest Airlines' CEO noted that despite rising fuel costs, air travel demand remains robust, with the airline participating in seven consecutive fare increases without any drop in demand, providing a positive signal for Alaska Air.
- Potential Earnings Revision: Analysts expect Alaska Air to report a $0.77 loss per share in 2026, but if the airline can offset fuel costs with higher ticket prices, future earnings estimates may see positive revisions.
See More
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- Fuel Cost Management: Alaska Airlines is managing soaring fuel costs by increasing fares, with expectations that if this trend continues, the company's profitability could improve, particularly against the backdrop of strong overall airline performance.
- Stock Performance: Shares of Alaska Air Group rose by 12.7% over the week, reflecting market optimism towards airline stocks, especially in light of rising fuel prices, as investors remain positive about the company's future earnings potential.
- Strong Industry Demand: Despite soaring fuel prices, Delta Air Lines reported that strong demand from the first quarter is continuing into the second quarter, indicating sustained consumer demand for air travel, which is particularly relevant for Alaska Airlines.
- Earnings Forecast Adjustment: Alaska Airlines anticipates a $0.70 reduction in earnings per share due to rising fuel costs in the first quarter and over $3 in the second quarter, but if they can offset these costs with fare increases, future earnings expectations may see positive revisions.
See More
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- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
See More
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- 737 MAX 7 Certification Progress: FAA Administrator Bryan Bedford anticipates that the Boeing 737 MAX 7 will receive certification this summer, while the larger MAX 10 is expected to be approved by year-end, providing crucial support for Boeing's market recovery.
- Production Rate Increase: The FAA supports Boeing's decision to raise the 737 MAX production rate from 42 to 47 planes per month, with further increases expected in the next 90 days, which will help meet market demand and enhance the company's profitability.
- New Production Line Opening: Boeing aims to increase production to 52 jets per month early next year, following the opening of a fourth 737 production line in Everett, Washington, which will further strengthen its production capacity and competitiveness in the market.
- Quality and Safety Collaboration: The FAA emphasizes collaboration with Boeing to ensure a focus on quality and safety during production, avoiding rework due to quality issues, thereby enhancing overall production efficiency and market trust.
See More
