September 16th 2022, 10:38:11 pm

(about 9 months ago)

FedEx warning shakes markets.

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North American equities had the worst week since the lowest levels for the markets in June as FedEx Corp. warned of a worsening situation, added to interest-rate hike concerns. S&P 500 lost around 5% this week, the most significant weekly decline since June 17. Nasdaq has its worst week since January, losing 5.8%. Canada’s S&P/TSX lost 1.96% in the past five trading days.


FedEx, a package-delivery company, plunged more than 20% after emphasizing the weakening business conditions and canceling its earnings forecast. The markets were already disturbed this week after the US inflation report showed a higher-than-expected reading which added to the possibility of the Fed raising rates by another 0.75%, and even the full percentage hike is not out of the question in their next week’s meeting.


The US Two-year Treasury yields, which reflect the policy rates, climbed to the highest level since 2007, at 3.87%. The move added to the curve inversion, a more significant sign of economic recession. More analysts are discussing the possibility of a depression if the central banks continue their rate hike cycle.


Other risky assets also took a hit. Bitcoin fell under US20,000 again, and Ethereum lost 16% this week to end up at US1440.