We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where Delta Air Lines, Inc. (NYSE:DAL) stands against the other stocks.

Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.

The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.

Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.

The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.

To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An aerial view of a commercial aircraft taking off from a coastal hub.

Delta Air Lines, Inc. (NYSE:DAL)

Delta Air Lines, Inc. (NYSE:DAL) dropped its share prices by 6.43 percent on Tuesday to close at $54.69 apiece, as investors parked funds to mitigate risks from the ongoing trade war’s impact on its business.

DAL’s decline was in line with its peers, with United Airlines losing 5.96 percent, Southwest Airlines decreasing 3.79 percent, American Airlines shedding 3.75 percent, and Alaska Air Group diving 6.58 percent, among others.

With President Donald Trump’s imposition of a 10 percent tariff on energy resources from Canada, the transportation and aviation sectors are among the industries expected to be heavily hit by higher fuel prices that would impact their profit margins.

In other news, Delta Air Lines, Inc. (NYSE:DAL) announced that it would reduce the frequency of roundtrip flights to Pocatello Regional Airport in Idaho to just one, citing low passenger numbers as the reason.

Overall DAL ranks 9th on our list of Tuesday's worst performers. While we acknowledge the potential of DAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DAL but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.