U.S. stock futures fell Friday morning as Wall Street headed toward a losing week, and traders absorbed an ugly earnings warning from FedEx. Dow Jones Industrial Average futures dropped by 181 points, or 0.58%. S&P 500 and Nasdaq 100 futures declined 0.75% and 0.93%, respectively.
Shares of FedEx plunged 15% in extended trading after the shipments company withdrew its full-year guidance, and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as “macroeconomic trends significantly worsened. ” The three major averages were on pace to notch their fourth losing week in five.
The Dow Jones Industrial Average declined 3.70% this week, while the S&P 500 is 4.08% lower. The Nasdaq Composite is down 4.62%, headed toward its worst weekly loss since June. During the regular session Thursday, the Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%.
Traders are concerned that markets will retest June lows after a surprisingly hot reading in August’s consumer price index report indicated an increasingly difficult pathway to bring down inflation by the Federal Reserve.
“They might have a hard choice to make,” iCapital’s Anastasia Amoroso said Thursday on CNBC’s “Closing Bell: Overtime.”