FedEx Faces Market Turbulence

In a surprising turn of events, FedEx shares took an 8% nosedive in premarket trading this Friday. This dramatic drop follows the company's decision to significantly lower its full-year earnings forecast, a move that has sent shockwaves through the market.

Behind the Forecast Cut

The delivery behemoth has revised its adjusted earnings expectations for fiscal 2025 to a range of $18.00 to $18.60 per share, a notable decrease from the previously anticipated $19 to $20. This adjustment is attributed to the dual pressures of a weakening industrial economy and the ongoing uncertainties surrounding trade policies under US President Donald Trump's administration.

Market Reaction

By 7:35 am ET, the impact was clear, with FedEx shares plummeting by 8.01% to $246.21. This development has raised concerns among investors and market analysts alike, signaling potential challenges ahead for global trade and economic stability.