It was updated Sept 16, 2022, 09:49am.
The markets opened down on Friday due to a gloomy outlook from FedEx.
FedEx shares fell quickly.
The S&P 500 fell more than a point and the tech-laden Nasdaq lost more than a point.
FedEx fell 23.2% after it missed profit and sales estimates and withdrew its full-year forecast due to weak demand.
FedEx's share price has fallen from its May 2021 high.
The drop in FedEx's share price trickled over into competitors.
The blue chip index is down more than 1,500 points this week and is on track for its worst week of the year.
After the Labor Department's red-hot August inflation report, the S&P and Nasdaq suffered their worst day of the year.
The FedEx warning came as a slap. It is a good sign that the economy began to slow.
FedEx announced significant cost-cutting measures in response tolagged global shipping volumes caused by poor macroeconomic conditions. FedEx CEO Raj Subramaniam was asked by CNBC if he thinks his company is stagnant because of a global recession.
A 100 basis-point rate hike by the Federal Reserve is becoming more and more likely. According to CFRA Research, the S&P 500 fell by an average of 2.5% one month after the Fed raised rates seven times.
When the Fed raises rates, here's what happens to the stock market.
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