Dow Jones Loses 300 points on FedEx warning

US stocks fell Friday as Wall Street headed toward a big losing week, and traders absorbed an alarming warning from FedEx concerning earnings and slowdown of the global economy. The Dow Jones Industrial Average dropped 306 points, or 1%. The S&P 500 and Nasdaq Composite slid 1.2% and 1.6%, respectively.

Shares of FedEx dropped by 24% after the shipments company withdrew its full-year guidance and said it will implement cost-cutting initiatives, including closing offices, to resist global shipment volumes as the global economy significantly worsened in the light of quarterly results.

Transport stocks are typically seen as a leading economic indicator, and FedEx pointed to weakness in Asia as one of the main reasons for its negative outlook. Shares of shipping rivals UPS and XPO Logistics dropped 4% and 7%, respectively, and Amazon’s stock fell 3%.

FedEx’s announcement comes soon after the CPI reading issued last Tuesday, which raised concerns that the Fed will be forced to cause a recession in order to cool prices.