Did This Single Stock Just Signal a Deep Recession?
Stocks have had a tough week, and Friday morning doesn't seem to be shaping up to give investors much relief. As of 8:30 a.m. ET, futures contracts on the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) had fallen roughly 1%, adding to steep declines that started in earnest after Tuesday morning's unexpectedly small reduction in year-over-year consumer price inflation.
The fear that most investors have centers on the interplay between monetary policy and the strength of the economy. In particular, as the Federal Reserve looks poised to keep boosting interest rates further, the resulting impact will be a slowdown in economic activity that could cause a recession. It's in that light that investors watched the latest report from shipping specialist FedEx (NYSE: FDX) on Thursday night, and what they saw raised new worries about what the future could bring to the economy and the stock market in the months ahead.
Shares of FedEx plunged 20% in premarket trading on Friday morning, following the release of its preliminary fiscal first-quarter financial results for the period ending Aug. 31. What the shipping giant said about the health of its business had dire implications for the broader economy.
Source Fool.com
