Markets Weigh Tariff Impact as Fed Divulged Economic Woes

Wall Street opened lower on Friday as investors dealt with tariff uncertainties. FedEx's forecast adjustment and a drop in transportation indices highlighted fears of a global economic shock. Analysts expressed concerns over trade tensions impacting investments, as central banks globally adopted cautious tones amid speculative rate cuts.

Wall Street was poised for a drop in early trading on Friday as the burden of trade tariffs continued to impact investor sentiment. FedEx became the latest company to adjust its outlook due to economic unpredictabilities, leading to a 9% fall in premarket trading. Similarly, UPS shares fell 1.9% as delivery firms, often economic bellwethers, felt the strain.

The Dow Jones Transport Index declined nearly 18% from its peak, teetering on its longest weekly downtrend in over a year. Chicago Federal Reserve President Austan Goolsbee warned that current trade conditions might shock the economy, stressing the importance of understanding the duration of tariffs and potential retaliations.

Markets are now attentive to President Trump's forthcoming tariff plans, expected by early April. The U.S. S&P 500 and Nasdaq 100 showed declines, yet a weekly increase for the S&P 500 presented hope. Despite Fed Chair Jerome Powell's reassurance of a stable economy, global trade concerns and central banks' caution have shifted market dynamics significantly.

(With inputs from agencies.)