Wall Street’s main indices opened flat on Friday after rallying to record highs in the previous session, while FedEx rose as the parcel delivery firm posted upbeat quarterly results.
In the early hours of trading, the Dow Jones Industrial Average (.DJI), opens new tab rose 68.7 points, or 0.15%, at the open to 46,211.16. The S&P 500 (.SPX), opens new tab rose 15.1 points, or 0.23%, at the open to 6,647.11, while the Nasdaq Composite (.IXIC), opens new tab rose 83.6 points, or 0.37%, to 22,554.315 at the opening bell.
US market closed on record highs on September 18. Nasdaq led the market rally, fueled by Nvidia’s $5 billion investment in Intel, which sent Intel’s stock soaring nearly 31%.
Both the S&P 500 and the Dow Jones Industrial Average also reached new closing highs, while the Russell 2000 small-cap index rose over 2%, hitting its highest level since 2021.
This surge came after the Federal Reserve implemented a quarter-point interest rate cut, seen as a cautious response to a weakening labour market and ongoing inflation.
Despite Fed Chair Powell expressing a measured optimism about future rate changes, investors reacted positively to the move.
FedEx reported its fiscal 2026 first-quarter results, ending in August 2025, posting revenues of $22.2 billion and operating income of $1.19 billion.
The company saw a year-over-year increase in earnings, with adjusted earnings per share (EPS) projected to be around $3.71, up slightly from $3.60 in the same quarter last year.
This follows a strong finish to fiscal 2025, during which FedEx delivered a diluted EPS of $6.88 and an adjusted EPS of $6.07, alongside a modest 2% year-over-year revenue growth.
In fiscal 2025, FedEx achieved its $2.2 billion structural cost reduction target and returned $4.3 billion to shareholders through buybacks and dividends.
The company’s recent strategy has centered on cost reduction via the DRIVE program, fleet modernization, and broader transformation efforts aimed at boosting long-term profitability.
Despite headwinds like inflation, rising wages, and a competitive market, FedEx remains cautiously optimistic about continued earnings growth for fiscal 2026, although it has issued more cautious guidance for the near term.