US equity markets retreated, extending losses in the afternoon session as a slew of economic data failed to alter expectations for further aggressive monetary policy tightening - Dow fell -173-points or -0.56%, The broader S&P500 lost -1.13% but held just above >3,900, with Energy (down -2.54%), Utilities (-2.53%), Information Technology (-2.37%) and Real Estate (-2.24%) all declining over >2% to lead nine of the eleven primary sectors lower. The Biden administration helped broker a tentative deal with unions to avert a strike, thereby avoiding a rail shutdown which would add to supply-chain pressures at the core of hot inflation. Union Pacific Corp added +0.19%. The Nasdaq shed -1.42%, with Amazon.com Inc (down -1.77%), Apple Inc (-1.89%), and Microsoft Corp (-2.71%) notable drags on the technology centric index. The small capitalisation Russell 2000 lost -0.72%.

• FedEx Corp slumped over >16% in extended trading the shipments company and economic bellwether withdrew its full-year guidance, and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as “macroeconomic trends significantly worsened.” The company said it is closing 90 office locations, shut down five corporate office facilities and pause hiring efforts, as part of those cost-cutting measures. In its preliminary results, FedEx reported earnings per share (EPS) of US$3.33 per share in its first quarter, down -19% from a year ago and well below the US$5.14 per share Wall Street expected. Revenue increased +5% from a year ago to $23.2bn but was slightly below analysts’ forecast for US$23.6B. The company said it expects business conditions to further weaken in the current quarter and forecast revenue to be in the range of US$23.5B to US$24B, with EPS of US$2.65 “or greater”. That compares to current Wall Street expectations for revenue of US$24.9B and EPS of $5.39. FedEx is slated to release its first quarter result on Thursday next week (22 September).