JETS slid as traders increased crude and downside airline bets after new U.S.-Iran strikes ended a ceasefire, raising fresh concerns about fuel costs, equities and the Federal Reserve's inflation fight ahead of Delta results.
Airline stocks came under pressure after a renewed exchange of U.S.-Iran strikes across the Middle East ended a ceasefire and revived fears of higher oil prices, a risk for carriers' fuel costs and for the Federal Reserve's effort to contain inflation. The U.S. Global Jets ETF fell 4% Wednesday, extending a two-day decline, though it remained up 10% since the conflict began on Feb. 28. Options activity showed defensive positioning in travel shares and bullish bets on crude ahead of Delta Air Lines earnings, with traders pricing in a 6% post-results move in Delta shares versus a median realized move of 4% over the past year.