FedEx shares dropped significantly following a disappointing earnings report and earnings miss, reflecting broader concerns about the economic environment. The company cut its full-year adjusted earnings per share (EPS) outlook to $20.00-$21.00 from a previous range of $20.00-$22.00. This decline in FedEx's stock, which fell around 14%, was the largest in over two years. The market reaction was influenced by the Federal Reserve's recent 50-basis point interest rate cut, which, despite initial euphoria, signaled underlying economic weaknesses. Analysts have responded by downgrading FedEx's stock and adjusting price targets, with Morgan Stanley lowering its price target to $200. The broader U.S. stock index futures also dipped as the rate cut rally cooled.