The S&P 500 fell 0.72%… Nasdaq also fell 0.90%↓
The CEO of global logistics company FedEx has warned of the possibility of a global economic downturn.
In addition, as the company’s notice that the quarterly earnings would be ‘halved’ was added, the stock price plunged the largest ever, and also lowered investor sentiment across the market.
According to CNBC broadcast on the 16th (local time), FedEx CEO Raj Subramaniam was asked, ‘Do you expect a global recession? I think so,” he replied.
“These numbers are never a good sign,” said Subramaniam, the CEO of the company.
“Across the world, we are seeing a drop in transport volumes in all sectors,” he said, taking office in June.
“We estimate that the economic conditions are not good,” he said. “Our operations reflect all other industries, especially high-end industries.”
The poor performance of logistics companies is interpreted to mean that the overall global economy is slowing down.
FedEx sharply lowered its May-August quarterly earnings forecast, which is scheduled to be released next week, raising concerns in the market.
Quarterly earnings were expected to be only regarding half of Wall Street analysts’ expectations, and quarterly sales were expected to fall by $800 million from previous estimates.
The company even withdrew its annual earnings forecast for 2022, which it announced in June.
Inflation is attributed to consumer spending cuts and shifting spending to travel and leisure.
The economic outlook has become more uncertain as China’s ‘corona lockdown’ measures and the followingmath of the Russia-Ukraine war overlap.
On the New York Stock Exchange, FedEx’s stock fell 21.4%, the largest decline since its IPO in 1978.
Not only FedEx, the party, but the entire stock market were hit by the warning of a recession in the mulleu industry, which reflects the global economy well.
On the New York Stock Exchange, the Dow Jones Industrial Average fell 139.40 points (0.45%) to 30,822.42, the S&P 500 fell 28.02 points (0.72%) to 3,873.33, and the Nasdaq fell 103.95 points (0.90%) to 11,448.40. each transaction was completed.
/yunhap news
