Stocks close lower on Friday, extending the selloff for the worst week since June for the S&P 500 and Nasdaq
Stocks fell on Friday as Wall Street ended one of its worst weeks in months and traders reacted to a nasty earnings warning from FedEx about the global economy.
The Dow Jones Industrial Average fell 139.40 points, or 0.45%, to close at 30,822.42. The S&P 500 lost 0.72% to end the week at 3,873.33. The Nasdaq Composite slipped 0.90% to end at 11,448.40. It was the worst week for the S&P 500 and the Nasdaq since June.
FedEx shares plunged 21.4%, their worst daily decline on record, after the shipping company withdrew its full-year guidance and said it would implement cost-cutting initiatives to address weak global shipment volumes as the global economy “deteriorated significantly”.
Transportation stocks are generally seen as a leading indicator of the stock market as well as the economy, and FedEx pointed to weakness in Asia as a key reason for its negative outlook. Shares of shipping rivals UPS and XPO Logistics fell about 4.5% and 4.7%, respectively, and shares of Amazon fell 2.1%.
FedEx’s announcement comes shortly after a hotter-than-expected inflation report from the United States on Tuesday raised fears that the Federal Reserve could be forced to trigger a recession to cool prices. This data triggered a drop of more than 1,200 points for the Dow Jones.
“There’s a lot of nervousness about how the global economy may affect the US economy now, as the US economy faces its own set of very serious issues. I think that dynamic is what people woke up,” Callie Cox said. , US investment analyst at eToro.
All three major averages suffered their fourth losing week in five, and the summer comeback rally is looking more and more like a bear market bounce. The Dow Jones Industrial Average fell 4.1% this week. The S&P 500 lost 4.8%, while the Nasdaq Composite fell around 5.5%.
Read the coverage of the mercado de hoy en español here.