The Dow Jones Industrials came off its lows of the day, but forfeited 139.40 points to conclude Friday and the week at 30,822.42
The S&P 500 sank 28.02 points to 3,873.33.
The NASDAQ Composite subtracted 103.95 points to 11,448.40.
Shares of FedEx plunged 21%, its worst daily drop ever, 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 the global economy “significantly worsened.”
Transport stocks are typically seen as a leading economic indicator, so FedEx’s announcement could contribute to broader declines on Friday.
Transport stocks are typically seen as a leading economic indicator, and FedEx pointed to weakness in Asia as one of the main reasons for its negative outlook. Shares of shipping rivals UPS lost 4% and XPO Logistics dropped 7%, and Amazon’s stock fell 3%.
The three major averages were on pace to notch their fourth losing week in five as a comeback rally looks increasingly like a bear market bounce. The Dow Jones Industrial Average has declined 4.1% this week, while the S&P 500 was 5% lower. The NASDAQ is down 5.5%, headed toward its worst weekly loss since June.
The University of Michigan’s consumer sentiment index preliminary September reading came in at 59.5, just below a Dow Jones estimate of 60. That print was still slightly above August’s final reading of 58.2.
Treasury prices lost ground, raising yields back to Thursday’s 3.45%. Treasury prices and yields move in opposite direction.
Oil prices eked up 26 cents to $85.36 U.S. a barrel.
Gold prices hiked $5.80 to $1,683.10 U.S. an ounce.
Stocks Tremble on FedEx Warning