U.S. stock futures declined as FedEx raised concerns about the health of the economy.
Wall Street’s main indexes hit near two-month lows on Friday’s early trading. Dow dropped over 220 points as the stock market heads for a big weekly loss.
FedEx’s shares fell more than 23% after it reported a swift downturn in shipping volumes in recent weeks. The company missed estimates on revenue and earnings in its first quarter and withdrew its full year guidance.
Amid the poor results, FedEx CEO Raj Subramaniam said a recession is likely next for the global economy as consumers across the world battle surging inflation.
“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam said CNBC’s Jim Cramer on Thursday, when asked if the economy was going into a worldwide recession.
“I’m very disappointed in the results that we just announced here, and you know, the headline really is the macro situation that we’re facing,” Subramaniam noted.
The executive, who took the helm of the Tennessee based company earlier this year, said that “the weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”