Transportation stocks, such as FedEx, plummet as Amazon announces moves that could disrupt the American logistics market.

Transportation sector stocks in the United States plummeted on Monday morning, following Amazon's announcement to expand its logistics services, making it a major competitor to parcel carriers and air freight companies, and affecting trucking companies and third-party brokers. FedEx's stock price fell by 7.4% at one point, marking the largest single-day drop in over a year, while another competitor, United Parcel Service, saw a drop of up to 8.9%. Logistics companies Forward Air and GXO Logistics experienced double-digit declines. Several trucking companies like Old Dominion Freight Line fell by over 5%. In a report sent to clients on Monday, Morgan Stanley analyst Ravi Shanker wrote that this news "could be a watershed moment for North American freight companies." Air freight and parcel carriers may be hit the hardest, while trucking companies, railway companies, shipping companies, and warehousing operators also face risks.