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Live update of stock market news: September 16, 2022

US stock futures on Friday showed the stock market sell-off is poised to deepen at the open as traders weigh in on an ominous warning from FedEx about the global economy.

Futures tied to the S&P 500 fell 0.8%, along with Nasdaq futures down 1%. Contracts on the Dow Jones Industrial Average fell 245 points, or 0.8%.

FedEx (FDX) withdrew its full-year guidance late on Thursday and transferred texting around its earnings prospects that sent the stock soaring in extended trading. Shares were up about 20% ahead of the market on Friday.

“Global volumes declined as macroeconomic trends deteriorated significantly towards the end of the quarter, both internationally and in the US,” said FedEx CEO Raj Subramaniam. in an income statement. “We’re working quickly to address these constraints, but given the rate at which conditions change, the first-quarter results were below our expectations.”

With the third quarter reporting season underway, some strategists have been thinking about their earnings expectations and slashing their forecasts.

Earnings growth expectations for the S&P 500 were up 3.7% in the third quarter, down sharply from expectations for 9.8% growth at the end of June, according to data from FactSet Research.

Analysts have slashed their third-quarter earnings expectations over the past two to three months for every sector in the S&P 500 except energy, and seven of the 11 sectors in the index are now expected to show a full year-on-year decline from just three in the second quarter.

Morning commuters walk on Wall St.  as Union Jack flies with half-staff outside the New York Stock Exchange (NYSE) in New York City, U.S., September 9, 2022. REUTERS / Brendan McDermid

Morning commuters walk on Wall St. as Union Jack flies with half-staff outside the New York Stock Exchange (NYSE) in New York City, U.S., September 9, 2022. REUTERS / Brendan McDermid

Morgan Stanley’s top strategist for US equities, Michael Wilson, a stock market officer, said that while the first half of the year was shaped by inflationary pressures and the bureau’s hawkish policy Federal Reserve, the rest will be driven by slowing growth and weak earnings.

“While we acknowledge the year-to-date underperformance, we do not expect the bear market to be over given our earnings forecasts,” Wilson said in a recent note to clients. I am correct.

In the bond market, the benchmark 10-year US Treasuries held above 3.46%, while the policy-sensitive 2-year Treasuries spiked further, reaching 3.9%, the highest since 2007.

Oil prices rose slightly on Friday morning but the commodity caught up with a third week of declines.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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