Wall Street drops on FedEx dive, Dow Jones loses 139 points

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NEW YORK, New York – A spectacular collapse of shares in FedEx due to declining shipments, reflecting a slowing of the global economy, saw share markets in the U.S. buckle again on Friday.

“There is a lot of nervousness about how the global economy can affect the U.S. economy now, while the U.S. economy is dealing with its own set of very serious issues. I think that dynamic is what people have woken up to,” Callie Cox, US investment analyst at eToro told CNBC Friday.

Meantime the IMF and the World Bank on Friday both warned of the potential of a global recession taking hold.

“In the background, the thing that’s on the minds of investors is whether we’re going to have a recession or not,” Tom Martin, Senior Portfolio Manager at GLOBALT in Atlanta told Reuters news agency Friday. “If we have a recession, we can expect further downside in the equity market.”

Despite the major falls, all indices trimmed losses towards the close Friday. The Nasdaq Composite ended down 103.95 points or 0.90 percent at 11,448.40.

The Dow Jones industrials lost 139.40 points or 0.45 percent at 30,822.42.

The Standard and Poor’s 500 was down 28.02 points or 0.72 percent at 3,873.33.

FedEx was the day’s worst loser, ditching $10 billion of its capitalization. The stock ended at $161.04 for a loff 21.39 percent.

The U.S. dollar remained well bid on Friday but struggled to extend gains. The euro hobbled back above parity, and at last call around the New York close Friday was changing hands at 1.0011. The British pound remained soft at 1.1423. The Japanese yen improved to 142.87. The Swiss franc weakened a tad to 0.9644.

The Canadian dollar was out of favor at 1.3273. The Australian dollar was motionless at 0.6717. The New Zealand dollar ticked up a touch to 0.5995.

On overseas equity markets, the FTSE 100 in London fell 0.62 percent. The Dax in Germany was off 1.66 percent. The Paris-based CAC 40 lost 1.31 percent.

In Australia, the All Ordinaries tumbled 98.10 points or 1.39 percent to 6,984.40.

Japan’s Nikkei 225 declined 288.60 points or 1.04 percent to 27,587.31.

In New Zealand, the S&P/NZX 50 dropped 78.48 points or 0.67 percent to 11,580.46.

South Korea’s Kospi Composite gave up 23.06 points or 0.96 percent to 2,378.77.

In China, the Shanghai Composite shed 73.52 points or 2.30 percent to 3,126.40.

In Hong Kong, the Hang Seng lost 168.69 points or 0.89 percent to 18,761.69.