New York stocks plunged on fears of a recession as global shipping company FedEx warned ahead of the Fed's monetary policy meeting scheduled for next week.
The Dow Jones Industrial Average closed at 30,822.42, down 139.40 points, or 0.45 percentage points, from the battlefield.
The S&P 500 index fell 28.02 points, or 0.72%, to 3,873.33, and the Nasdaq, centered on technology stocks, closed at 11,448.40, down 103.95 points and 0.90% from the battlefield.
The Dow is down about 4.1% this week, while the S&P 500 and Nasdaq are down 4.8% and 5.5%, respectively.
The three major indices succeeded in rebounding for the first time in four weeks last week, but turned downward again within a week due to the impact of consumer prices in August.
FedEx's warning exacerbated investor sentiment as continued inflation and intense Fed tightening put pressure on the economy to worsen.
FedEx withdrew its full-year earnings forecast in June, saying the high volatility the day before made it difficult to forecast earnings.
It also announced a plan to cut costs in consideration of the reduction in freight volume due to the global economic slowdown.
FedEx CEO Subramaniam told CNBC that he expects the global economy to enter a recession.
FedEx shares fell 21% on news of FedEx's annual forecast withdrawal, while shares of its rivals UPS and XPO Logistics both fell more than 4%.
In the global economic trend, negative perception spread in the stock market as FedEx's performance has traditionally served as a measure of the economy.
Meanwhile, according to the Chicago Mercantile Exchange's FedWatch report, there is an 84% chance that the Fed will raise rates by 0.75 percentage points in September in the federal funds rate futures market, so another giant step in September was assumed.
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