It's been a rough couple of weeks on the stock market, ending recently with a warning from FedEX about a downturn in the global economy that sent shares tumbling.
FedEx CEO Raj Subramaniam said on CNBC that he believed a recession was impending for the global economy. He cited the company's weakening global shipment volumes as a reason for his prediction.
"We are a reflection of everybody else's business, especially the high-value economy in the world," he said.
Transportation stocks are typically seen as a leading indicator for the economy. However, as an article in Barron's asked, "Is It the Economy Or the Company?" So far, it appears investors think it is more the economy, with UPS and other transportation stocks hit hard.
Q: Could we be heading to a global recession?
Chris Van Gorder, Scripps Health
YES: I believe it will be extraordinarily difficult for central banks to raise interest rates sufficiently to reign in inflation without slowing economic growth to a level that results in a global recession. A tight labor market and continued energy and food supply chain disruptions will only exacerbate the issue.
Norm Miller, University of San Diego
YES: According to several European economist panels, there is near certainty that Europe will soon be in a recession. Measures to dampen inflation are not free and will slow economies in Asia and all the Americas. Disastrous effects from the Russia-Ukraine war will include famine in Africa, uncertain energy prices globally and deaths from a lack of heat this winter. The IMF has the global GDP growing at 2.9 percent in 2023. This will more likely be revised closer to zero.
Jamie Moraga, IntelliSolutions