Stocks fell on Friday as Wall Street headed for a week of big losses and traders absorbed FedEx’s bleak earnings warning about the global economy.
The Dow Jones industrial average was down 306 points, or 1%. The S&P 500 and Nasdaq Composite fell 1.2% and 1.6%, respectively.
Shares of FedEx fell 24% after the shipping giant It withdrew its full-year guidance And he said he would implement cost-cutting measures to combat soft global export volumes as the global economy “deteriorated significantly”.
Traffic stocks are commonly found in a A leading indicator for the stock market and economy, and FedEx pointed to weakness in Asia as one of the main reasons for its negative outlook. Shares of shipping rivals UPS and XPO Logistics fell 4% and 7%, respectively, and Amazon fell 3%.
FedEx’s announcement came after a warmer-than-expected inflation report in the U.S. on Tuesday, which raised concerns that the Federal Reserve could cause a slowdown to cool prices. That data triggered a decline of more than 1,200 points for the Dow.
“There’s a lot of anxiety about how the global economy might affect the U.S. economy right now, while the U.S. economy is dealing with its own very serious problems. I think people are waking up to change,” said Callie Cox. , US investment analyst at eToro.
The three major averages were on pace for a fourth losing week in five as a comeback rally looks like a bear market bounce. The Dow Jones Industrial Average is down 4.7% this week, while the S&P 500 is down 3.8%. The Nasdaq Composite fell 6.2%, heading for its worst weekly loss since June.