Stocks fell sharply in morning trading on Wall Street
Friday, putting the market on track for another week of significant losses. The
latest disappointing news for investors came from corporate giants FedEx and
General Electric, which cautioned about worsening trends in the already slowing
economy.

The S&P 500 fell 40.76 points or 1.04% to settle at
3,860.59 as of 10.12 am Eastern time. The benchmark index has declined over 5%
for the week, with much of the losses coming from a slump on Tuesday after a
surprisingly hot report on inflation.

Also Read | Joe Biden averts railway labour strike weeks before midterm elections

The Dow Jones Industrial Average fell 203.44 points or
0.66% to 30,758.38. The Nasdaq Composite fell 161.43 points or 1.4% to
11,390.93. Both the key indexes are also on track for sharp weekly losses.

Technology companies, retailers and industrial firms had
some of the biggest losses.

FedEx tanked 21.2% after warning investors that profits for
its fiscal first quarter will likely come lower than expected due to a decline
in business. It is also closing storefronts and corporate offices and expects
business conditions to further weaken.

Industrial major General Electric shed 3.8% after its chief
financial officer (CFO) said supply chain problems were raising costs.

Also Read | Jeff Bezos attends Kansas City Chiefs vs Los Angeles Chargers: Watch

Utilities and makers of household goods, which are often
considered less risky investments, stood up higher than the rest of the market.

The discouraging corporate updates hit a market already
struggling with stubbornly high inflation and higher interest rates, which will
slow the economy.

Also Read | Adani succeeding in old world play between tech billionaires

The Federal Reserve is aggressively increasing interest
rates in an effort to cool the highest inflation in four decades but has raised
concerns it could raise rates too high and too and put the economy into a
recession. The central bank has already raised interest rates four times this
year and economists expect another major hike of three-quarters of a point when
the Fed’s leaders meet next week.

Also Read | How Gautam Adani scaled the billionaire list in just 6 months

Bond yields rose. The yield on the two-year Treasury, which
tends to track actions by the Fed, rose to 3.90% from 3.86% late Wednesday. The
yield on the 10-year Treasury, which helps determine where mortgages and rates
for other loans are heading, rose to 3.46% from 3.45% late Wednesday.