By Liz Moyer
Investing.com -- Trucking company shares are being weighed down by the rising cost of diesel fuel, which has climbed to a national average of $5.75 a gallon, according to AAA.
Diesel is now about 80% more than it was this time last year, AAA says. The Dow Jones Transportation index is down 20% this year, though it rose 1.7% on Tuesday.
Shares of Knight Transportation Inc (NYSE:KNX) were down 0.7% on Tuesday and have lost 26% so far this year. Shares of J.B. Hunt Transport Services Inc (NASDAQ:JBHT) are flat for the day down about 21% so far this year. J.B. Hunt was recently named a "best idea" at Stephens, with an overweight rating and $230 price target.
The Federal Reserve is expected to raise interest rates on Wednesday and keep raising rates this year to tamp down inflation, but analysts are worried the central bank could act too aggressively and tip the economy into recession. A slow down in the economy could lead to a slow down in freight demand as consumers pull back on spending.