Wall Street was set to open lower on Friday, potentially putting an end to markets’ first winning week in over a month. Futures for the S&P 500 and Dow Jones Industrial Average were down 0.3% ahead of the market open, while Nasdaq futures dropped by 0.4%.
FedEx saw a sharp decline of 8% in premarket trading after the company projected flat to slightly lower year-over-year revenue and reduced its earnings per share guidance. Nike fell 6.5% after it warned of a significant revenue drop in the current quarter, attributing the decline to geopolitical issues, new tariffs imposed by the Trump administration, and a decrease in consumer confidence.
Johnson & Johnson announced that it will invest over $55 billion in the United States over the next four years, including the construction of four new manufacturing plants. However, this news did not have a major impact on its stock price.
Wall Street has been experiencing significant volatility, with stock prices fluctuating due to uncertainty surrounding the effects of President Trump’s trade war on the economy. Some worry that inflation-weary consumers will reduce their spending even more if prices rise due to tariffs. Companies are considering this potential impact when updating their forecasts.
Markets have not finished a week with gains since the middle of last month. If Friday’s performance doesn’t improve, it will mark their fifth consecutive week of losses.
In European markets, Germany’s DAX dropped 0.7% at midday ahead of a vote on a budget that will increase defense and infrastructure spending. France’s CAC 40 also fell by 0.7%.
Britain’s FTSE 100 declined by 0.5% after the Bank of England decided to keep its main interest rate unchanged a day earlier. The Federal Reserve, Bank of Japan, and China’s central bank all kept their rates steady, opting to remain cautious while awaiting the developments from Trump’s trade war and other upcoming policies.
Shares of European airlines were under pressure after a fire caused a power outage at London’s Heathrow Airport, forcing it to shut down for the day and disrupting global travel for hundreds of thousands of passengers.
In Asia, Chinese markets faced declines once again. The Hang Seng in Hong Kong dropped 2.2% to 23,689.72 after China decided to keep its key lending rates unchanged. Traders have been selling off technology stocks following recent gains.
The Shanghai Composite index fell 1.3% to 3,364.83.
In Tokyo, the Nikkei 225 closed 0.2% lower at 37,677.06 as markets reopened after a holiday on Thursday. Japan’s core inflation rate came in lower than expected, partly driven by a rise in rice prices due to a supply shortage.
South Korea’s Kospi gained 0.2% to 2,643.13, and Australia’s S&P/ASX 200 rose 0.2%, closing at 7,931.20. In Taiwan, the Taiex dropped 0.8%.
