(Bloomberg) — FedEx Corp. tumbled the most in two years after warning that its business would slow in the year ahead, an ominous sign about the direction of the US economy.
The parcel giant was hurt by a pullback on priority services as customers traded down to cheaper shipping options in what Chief Executive Officer Raj Subramaniam called “a challenging quarter.” A broad effort to slash costs gained traction but only partially blunted those headwinds, the Memphis-based company said late Thursday.
FedEx’s shares slid 14% after the markets opened Friday in New York, the biggest intraday decline since September 2022. Rival United Parcel Service Inc. fell 3.4%.
The results spooked investors looking for signals about where the economy is headed after the Federal Reserve this week cut its benchmark interest rate for the first time since 2020. The policy shift reflects growing concern about the health of the labor market as job gains have slowed and inflation cools.
https://finance.yahoo.com/news/fedex-narrows-2025-outlook-posts-201154635.html
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