Stock Market Takes a Break: Wall Street Calms Down as FedEx Faces Problems

Stock market takes a breather as Wall Street cools post-Fed boost. FedEx faces challenges. Get the latest on market movements and economic outlook.

Dec 20, 2023 - 09:25
Dec 20, 2023 - 09:25
Stock Market Takes a Break: Wall Street Calms Down as FedEx Faces Problems
Stock Market Takes a Break: Wall Street Calms Down as FedEx Faces Problems

Today, the U.S. stock market is likely to start lower. Why? Well, investors are kind of taking a break from the recent good run. This good run happened because the Federal Reserve, which is like the boss of money stuff in the U.S., hinted that it might make things easier with money. But now, people are slowing down a bit.

You know, the big money numbers, like Dow and S&P 500, went up more than 2% since December 13. That's when the Federal Reserve said they might make it easier with money until 2024. Dow even got to a new high, and S&P 500 is almost at the highest it's been since January 2022.

But after all this good news, some people, like the Chicago Fed President Austan Goolsbee, are saying, "Hold on, let's not get too excited. We need to see if we can beat this problem called inflation first before we make money too easy."

People who watch the money stuff closely think the Federal Reserve might make money easier by quite a bit next year, like maybe more than 125 basis points. They even think the first change might happen in March 2024. But you know, not everyone agrees. Some say, "Maybe we don't need so many changes. Maybe just two in 2024 and then stop."

And there's this company called FedEx. They're having a tough time. Their shares dropped a lot, around 10.9%, because they're not making as much money as people thought. Another company, UPS, is also feeling the hit because they're kind of in the same delivery business, and their shares fell by 3.2%.

Later today, we're waiting for some news about how confident regular people feel about money and also some info about people buying and selling homes. That's coming at 10:00 a.m.

As of now, Dow is expected to start down by 56 points, S&P 500 down by 8.25 points, and Nasdaq down by 42 points.

So, it's a bit of a pause today. Let's see how things go!

Also Read: Today's Stock Market Update: US Futures Maintain Gains Amid Rate-Cut Speculations

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