U.S. stock futures fell on Friday as Wall Street headed for a tumbling week as traders absorbed FedEx’s ugly earnings warning on the global economy.
Dow Jones Industrial Average futures fell 201 points, or 0.7%. S&P 500 and Nasdaq 100 futures fell 0.7% and 0.9%, respectively. On Thursday, the Dow Jones Industrial Average fell 173 points, or 0.56%, to its lowest close since July 14.
FedEx shares tumbled 19% after the trucking company withdrew its full-year guidance and said it would implement cost-cutting moves to combat weak global freight volumes amid a “significant deterioration” in the global economy.
The three major indexes were on track for their fourth weekly loss in five as the rally looked increasingly like a bear market rally. The Dow Jones Industrial Average fell 3.70% for the week, while the S&P 500 lost 4.08%. The Nasdaq Composite fell 4.62%, its biggest weekly loss since June.
Most of Tuesday’s losses came after a surprisingly upbeat report on consumer prices in August, with the Dow down 1,200 points, its biggest drop in two years.