Investors are worried after FedEx warns of a tough year ahead.

FedEx warns of tough year ahead, sending investors into a tailspin.

FedEx withdraws full-year guidance, cites soft global shipment volumes.

In a stunning turn of events, FedEx issued an earnings warning Thursday night, sending the stock market tumbling. The Dow Jones Industrial Average futures dropped by 142 points, or 0.46%, while S&P 500 and Nasdaq 100 futures declined 0.56% and 0.64%, respectively. The three major averages were on pace to notch their fourth losing week in five. The Dow Jones Industrial Average declined 3.70% this week, while the S&P 500 is 4.08% lower. The Nasdaq Composite is down 4.62%, headed toward its worst weekly loss since June.

FedEx attributed the weak outlook to soft global economic conditions that have led to lower than expected shipment volumes. In response, the company has withdrawn its full-year earnings guidance. FedEx shares plunged 15% in extended trading Thursday night after closing at $174.02 during the regular session.

This news comes as a shock because just last month FedEx reported strong quarterly results that beat expectations on both the top and bottom lines. However, it seems that the company's positive momentum has quickly dissipated as concerns about the global economy continue to mount.

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U.S. stock futures fall as Wall Street heads toward a losing week.

Dow Jones Industrial Average futures drop by 142 points.

U.S. stock index futures fell on Friday morning as Wall Street headed for a losing week amid concerns that the market will retest June lows after inflation data. Dow Jones Industrial Average futures were down 142 points, or 0.46%, while S&P 500 and Nasdaq 100 futures declined 0.56% and 0.64%, respectively. The three major averages were on pace to notch their fourth losing week in five.

S&P 500 and Nasdaq 100 futures decline 0.56% and 0.64%, respectively.

The Dow Jones Industrial Average declined 3.70% this week, while the S&P 500 is 4.08% lower. The Nasdaq Composite is down 4.62%, headed toward its worst weekly loss since June. During the regular session Thursday, the Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%.

Markets are concerned that markets will retest June lows after a surprisingly hot reading in August's consumer price index report indicated an increasingly difficult pathway to bring down inflation by the Federal Reserve. "They might have a hard choice to make," iCapital's Anastasia Amoroso said Thursday on CNBC's "Closing Bell: Overtime."

"Before they were saying, we're going to try to have a soft landing and bring down inflation. Now they may have to make a choice. It's either a soft landing or bringing down inflation. In other words, they may have to engineer more of a crackdown on economic growth to bring down inflation," she added.

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Traders concerned that markets will retest June lows after inflation data.

Consumer price index report indicates an increasingly difficult pathway to bring down inflation.

The consumer price index (CPI) report for August showed that inflation is still a concern for the Federal Reserve. The CPI rose 0.4% in August, higher than the 0.2% expected by economists surveyed by Dow Jones. This is the biggest increase in CPI since January. The Fed has said that it wants to see inflation at 2%.

Federal Reserve may have to engineer more of a crackdown on economic growth to bring down inflation.

Amoroso said that the Fed may have to make a choice between a soft landing and bringing down inflation. "In other words, they may have to engineer more of a crackdown on economic growth to bring down inflation," she added. This would be a difficult decision for the Fed, as it could lead to a recession.

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Consumer sentiment data on tap for Friday.

Consumer Sentiment Data on Tap for Friday

The University of Michigan's Consumer Sentiment Index is due out at 10 a.m. ET.

Economists polled by Reuters expect the index to come in at 92.0, down from 93.4 in August.

The consumer sentiment data will be closely watched by investors as they look for clues about the health of the U.S. economy.

Subsection 4.4 A strong reading could ease concerns about a potential slowdown in the economy and help support stock prices.

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