Why FedEx Shares Are Falling Today
Shares of FedEx (NYSE: FDX) traded down more than 6% on Wednesday afternoon on new projections that suggest the COVID-19 pandemic is going to be with us for some time. After losing nearly half their value in the early stages of the pandemic, FedEx shares had been trying to mount a comeback in recent weeks, but that optimism was derailed by comments by the White House coronavirus task force.
FedEx and other shipping stocks have been under pressure since the early stages of the pandemic, with investors worried that a slowdown in economic activity in Asia would lead to falling freight volumes globally. As the virus spread, the impact on the economy (and with it, shipping volumes) has grown more certain, causing dramatic declines in shipping stocks.
In recent weeks, however, the tone of the sell-off has softened in part thanks to a $2 trillion economic stimulus package that slowly made its way through Washington.
Source Fool.com
