US stocks retreat on weak corporate results; FedEx cuts outlook

As investors assessed the potential for future Federal Reserve policies, U.S. stocks declined on Friday due to weak corporate earnings.

At 09:35 ET, the NASDAQ Composite plummeted 200 points, or 1.1%, the S&P 500 index sank 55 points, or 1%, and the Dow Jones Industrial Average fell 345 points, or 0.8%.

Following its largely anticipated decision to leave interest rates steady, the U.S. central bank provided markets with a brief respite this week. However, Fed members lowered their growth outlook for 2025 and increased their inflation forecast.

Although the Fed did stick to its rate-cutting estimates of at least 50 basis points this year, this prognosis was somewhat clouded by its expectations of increased inflation. This year, the central bank anticipates inflation to continue to rise beyond its 2% objective.