US open: Stocks slip again on macro uncertainty

(Sharecast News) - US stock markets fell for the second straight day on Friday, as optimism fuelled by the Federal Reserve earlier in the week quickly faded, with blue chips Nike, Micron Technology and FedEx providing a drag as earnings disappointed. The Dow, S&P 500 and Nasdaq were all trading around 0.4% lower by 1110 ET, close to their lowest levels in six months, as investors continued to digest lower economic growth projections and higher inflation forecasts by the Fed on Wednesday.

While no major data was on the docket for Friday, investors will be searching for catalysts amid ongoing uncertainty regarding the economy and the unpredictable moves coming from Washington.

"As has been seen over the last two and a half years, dip buying has been a highly profitable strategy, particularly when markets have been as oversold as they are now," said David Morrison, senior market analyst at Trade Nation.

"But concerns over the Trump administration's tariffs, the chaos of DOGE's slashing of government spending and the fraught geopolitical situation on many different fronts has seen investors hold back from adding long side exposure. It feels as if market participants are waiting to hear something positive to trigger a fresh round of buying. As things stand, it's difficult to know where that could come from."

In a similar vein, New York Fed president John Williams said in a speech on Friday that the US economy started 2025 on a "firm footing" but "uncertainty is high". He said that recent economic indicators have sent "mixed signals" as he warned of slowing growth this year.

Market movers

Nike was down 7% after the sporting goods behemoth underwhelmed with forecast-beating third-quarter results. While Nike comfortably topped estimates, sales still fell 9% year-on-year, while the company pointed to a further revenue slide in the fourth quarter and lower margins than last year.

Micron Technology tanked 8% despite the data storage outfit beating second-quarter estimates for both revenues and profits and providing stronger-than-expected guidance for the current quarter. The company did forecast margin improvements that underwhelmed investors.

Meanwhile, FedEx shares were down 9% after the shipping and logistics giant cut its annual guidance and posted adjusted EPS of $4.51 for its third quarter, lower than the $4.54 expected by the market.

Airline stocks including American, Delta and JetBlue and were also loewr after Heathrow, the world's second-busiest airport, was forced to cancel flights and shut its doors to passengers following a power outage.