Despite the fact that markets initially reacted positively to the Fed's rate cut aimed at supporting the labor market, new concerns emerged on Friday. The 15.2% drop in FedEx shares after the publication of disappointing reports for the first quarter was a wake-up call. As an indicator of the economy, FedEx indicates a possible slowdown in economic activity. A decrease in demand for delivery services may indicate that the economy is not as strong as expected. Some analysts express concern about the state of the economy and markets. They note that the current easing cycle is reminiscent of 2001 and 2007, when similar rate cuts failed to prevent recessions. Experts predict that a recession may begin in the near future, and unemployment may rise to 6%. Nevertheless, there is an opinion that the pullback in the markets may be moderate. Despite the S&P and Nasdaq falling by 0.19% and 0.36%, respectively, the Dow Jones Industrial Average rose by 0.09%, reaching a new high. All three indexes ended the week in positive territory. This week, markets will closely monitor important economic indicators such as preliminary PMI figures, consumer confidence and the PCE report to understand whether the rate cut was a revision or a reaction to economic conditions.
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