The stock market started the day on a downward trend as investors decided to sell off some of their holdings in light of recent gains. This resulted in FedEx, which is often considered a gauge of economic health, experiencing a significant decline in its stock price due to disappointing financial results.
The Dow Jones Industrial Average, after a ten-day winning streak, fell by 92 points or 0.2%. Similarly, the S&P 500 dipped 0.2% following its approach towards a new record high the day before. The Nasdaq Composite also experienced a minor decline of 0.1%.
FedEx’s stock dropped by 11% due to a pessimistic revenue forecast for the fiscal year. Additionally, the company’s financial performance for the second fiscal quarter fell short of Wall Street’s expectations. As a result, the Dow Jones Transportation Average also suffered a decrease of more than 1.5%.
In contrast, the stock market had performed well on the previous day. The S&P 500 had shown a 0.59% increase, nearing its previous record high set in January 2022. The Nasdaq Composite exceeded the 15,000 level for the first time since January 2022, and the Dow rose by 251.90 points or 0.68%, setting a new record high. Both indexes recorded their ninth consecutive day of gains.
Source (CNBC)
