Stocks fell on Friday as Wall Street headed for a big losing week, and traders digested an ugly earnings warning from FedEx about the global economy.
The Dow Jones Industrial Average was down 306 points, or 1%. The S&P 500 and Nasdaq Composite were down 1.2% and 1.6%, respectively.
FedEx shares fell 24% after the shipping company I pulled the whole year directives It said it would implement cost-cutting initiatives to counter weak global shipment volumes as the global economy “significantly deteriorates”.
Transportation stocks are usually seen as A Leading indicator of the stock market as well as the economyFedEx cited weakness in Asia as one of the main reasons for its negative outlook. Shipping competitors UPS and XPO Logistics are down 4% and 7%, respectively, and Amazon is down 3%.
The FedEx announcement comes shortly after a hotter-than-expected inflation report was released in the US on Tuesday, sparking fears that the Federal Reserve will have to cause a recession to cool prices. That data triggered a drop of more than 1,200 points for the Dow Jones Index.
“There is a great deal of concern about how the global economy is affecting the US economy right now, while the US economy is dealing with its own set of very serious issues. I think this dynamic is what woke people up to,” said Kaley Cox. , a US investment analyst at eToro.
The three major averages were on track for their fourth losing week in five as the rally rally looks increasingly 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 is down 6.2%, heading for its worst weekly loss since June.
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