US Stocks Slip on FedEx Earnings Miss, But Weekly Gains Still Within Reach

U.S. stocks edged lower Friday as FedEx’s disappointing earnings dragged markets down, despite a strong week driven by optimism over the Federal Reserve’s aggressive rate cut. As of 09:35 ET, the Dow Jones Industrial Average dropped 85 points (0.2%), the S&P 500 fell 15 points (0.3%), and the NASDAQ slipped 20 points (0.1%).

This comes after the Dow and S&P 500 hit record highs on Thursday, boosted by the Fed’s decision to cut rates by 50 basis points, launching an easing cycle that could result in a total of 125 bps in cuts by year-end. While Friday’s minor losses dampened sentiment, the major indices are still set for weekly gains, with the S&P 500 up 1.6%, the DJIA rising 1.5%, and the Nasdaq leading with a 1.9% gain.

Analysts at UBS noted, “Historically, stocks have performed well when the Fed cuts rates while the U.S. economy continues to grow.” This outlook reflects a shift from concerns earlier in August when weak job data raised fears that the Fed had delayed rate cuts for too long.

FedEx Weighs on Markets

FedEx FDX saw its stock tumble 13% after reporting significantly weaker-than-expected quarterly earnings. The company, often seen as an indicator of global economic health, cited a customer shift toward cheaper shipping options and softening industrial demand as key factors. FedEx’s weak results are raising fresh concerns about a global economic slowdown.

Nike Boosts Sentiment

Meanwhile, Nike NKE stock surged over 7% following news that CEO John Donahoe will step down next month, to be replaced by Elliott Hill, a Nike veteran with over three decades of experience.

Crude Oil Holds Weekly Gains

Oil prices dipped Friday but remained on track for a second consecutive week of gains, thanks in part to the Fed’s rate cut easing demand concerns. By 09:35 ET, Brent was down 0.7% at $74.33 per barrel, while U.S. crude futures (WTI) dropped 0.8% to $70.61.

Despite Friday’s declines, crude benchmarks have rebounded since hitting three-year lows on September 10, with a 4% gain this week alone.

SPX$0.0000, DJIA, and are set to close the week on a high note despite today’s dip.