The 1,000-point nosedive in the Dow Jones industrial average is poised to continue on Monday on fears the economy is skidding into an unavoidable recession, with entertainment stocks among the industries hit hard as analysts expect consumers to tighten their belts. Even the venerable Disney stock has been hit hard, which has one analyst seeing a harbinger of “doom and gloom.”
Investors worry a significant drop in consumer spending would hurt Hollywood as TV advertisers slash budgets, families cancel summer theme park vacations and subscribers cancel streaming services to save cash. Exacerbating any potential recession-related drop is that the industry has already been under significant pressure, with one key barometer — the S&P 500 Media & Entertainment index — down 33% from its all-time high last August.