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Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York on August 8, 2022.
Andrew Kelly | Reuters
U.S. stock futures fell on Thursday evening as Wall Street headed for a losing week and traders absorbed a nasty earnings warning from FedEx.
Dow Jones Industrial Average futures fell 160 points, or 0.51%. Futures on the S&P 500 and Nasdaq 100 fell 0.64% and 0.75%, respectively.
FedEx shares fell 15% in extended trading after the shipping company withdrew its full-year guidance and said it will implement cost-cutting initiatives to contend with soft global shipping volumes as “macroeconomic trends worsened significantly.”
The three major averages were in the midst of their fourth losing week in five. The Dow Jones Industrial Average fell 3.70% this week, while the S&P 500 is 4.08% lower. The Nasdaq Composite is down 4.62%, heading for its worst weekly loss since June.
In the regular session Thursday, the Dow fell 173 points, or 0.56%, to its lowest close since July 14. The Nasdaq Composite fell 1.43%, while the S&P 500 fell 1.13%.
Traders are concerned that markets will retest June lows after a surprisingly warm reading in August’s consumer price index report indicated an increasingly difficult path to bringing down inflation by the Federal Reserve.
“They may have a tough choice to make,” iCapital’s Anastasia Amoroso said Thursday on CNBC’s “Closing Bell: Overtime.”
“Before they said we’re going to try to have a soft landing and bring inflation down. Now they might have to make a choice. It’s either a soft landing or bring inflation down. In other words, they might have to engineer more a suppression of economic growth to bring down inflation,” she added.
On the economic front, traders expect the latest consumer sentiment data at 10 ET Friday.
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