US equities drop to a two-month low after falling global demand and “FedEx” warnings.
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The three major US equity indices have fallen to levels not seen since mid-July
US equities closed sharply lower on Friday, plummeting to a two-month low as FedEx warning of an impending global slowdown accelerated investors’ flight to safe havens at the end of a turbulent week.
The three major US equity indices have fallen to unprecedented levels since mid-July, with the S&P 500 closing below 3900 points, an important support level.
Investor sentiment receded from risk after FedEx withdrew its earnings forecast late Thursday, citing signs of declining global demand.
The FedEx move followed statements from the World Bank and the International Monetary Fund, which warned of an impending global economic slowdown.
According to preliminary data, the index (Standard & Poor’s 500) fell 27.03 points, or 0.69 percent, to close at 3,873.28 points, while the Nasdaq Composite lost 103.60 points, or by 0.90 per cent, to 11,448.76 points. The Dow Jones Industrial Average fell 143.94 points, or 0.46 percent, to 30,817.88 points.
And before today, The World Bank has warned that the world could be heading towards a global recessionAt the same time, central banks raise interest rates to fight persistent inflation.
Read also: US Treasury: Economic growth is slowing … there is a risk of recession
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