US stock index futures fall as rate cut rally cools; FedEx is presented by Investing.com

Investing.com– U.S. stock index futures were slightly lower in evening trade on Thursday, after an interest rate cut by the Federal Reserve and a rally in technology stocks sent Wall Street to record highs.

Weaker-than-expected earnings from FedEx Corporation (NYSE: ) weighed on sentiment, with shares falling sharply in aftermarket trade.

Thursday’s rally on Wall Street came after stock markets initially saw a mixed reaction to Fed tapering as Chairman Jerome Powell presented a less dovish outlook for rates.

But with interest rates still poised to fall sharply in the near term, investors concentrated in risk-based assets, with the battered tech sector seeing much of the buying.

However, futures showed sentiment cooling after Thursday’s rally ahead of a Bank of Japan meeting on Friday that prompts some cautious plays.

fell 0.1 percent to 5,773.50 points, while it was down 0.1 percent to 20,060.50 points by 19:35 ET (23:35 GMT). rose slightly to 42,462.0 points.

Dow, S&P hit record highs after rate cut

The Dow Jones and S&P 500 closed at record highs on Thursday, with buying fueled largely by optimism about lower interest rates.

The Fed cut interest rates by 50 basis points – the upper end of market expectations – and kicked off an easing cycle that is expected to see rates fall by a total of 125 bps by the end of the year.

The stock rose 1.7 percent to 5,713.64 points on Thursday, while it rose 2.5 percent to 18,011.51 points. It rose by 1.3% to 42,025.19 points.

Technology was the best performing sector for the day, up 4%.

However, the Fed’s medium- to long-term outlook for rates looked less favorable. Chairman Powell said the central bank does not intend to adopt ultra-low rates and that its neutral rate is likely to be much higher than seen in the past.

The excessive rate cut also raised questions about the health of the US economy amid recent signs of a severe cooling in the labor market.

Fedex slips on weak earnings, adds to economic concerns

Delivery and logistics giant FedEx fell 11% after reporting substantially weaker-than-expected quarterly earnings.

The company has been hit by customers switching to cheaper, slower options, while industrial demand has also been weaker than expected.

FedEx is considered a benchmark for the global economy given its strong trade exposure. Its weak quarterly earnings also raise questions about a potential slowdown in business.