FedEx Stock Slumps to 271st in Trading Volume Amid Debt Issuance and Tariff Fears

On August 1, 2025, FedEx (FDX) closed at $216.97, a 2.86% decline, with a trading volume of $480 million ranking 271st in the market. The selloff was driven by the company’s €850 million debt issuance, raising concerns about capital allocation and margin pressures from impending U.S. tariff changes. Analysts remain divided, with some advocating for an "Outperform" rating while others set a $200 price target.

The debt issuance, structured as €500 million at 3.500% due 2032 and €350 million at 4.125% due 2037, has intensified scrutiny over FedEx’s debt servicing costs. The U.S. elimination of the de minimis exemption for customs compliance, effective late August, adds sector-wide risks, particularly for cross-border express and freight operations. Technical indicators show a bearish trend, with RSI in oversold territory and a bearish MACD crossover.

Options activity highlights aggressive bearish positioning. The FDX20250808P215 put option, with a $215 strike and 72.47% leverage ratio, is favored for short-term downside exposure. Its low theta and high delta make it responsive to price drops. A secondary play, the FDX20250808P210, offers 159.85% leverage but higher volatility sensitivity. Both align with the stock’s technical breakdown and sector headwinds.

Historical backtests of FDX’s performance after significant intraday declines show a 52.15% 3-day win rate, 52.32% 10-day win rate, and 56.13% 30-day win rate. The maximum observed return was 1.68% over 30 days, suggesting potential for modest rebounds following sharp declines. Key support levels at $221.60 and resistance at $223.28–273.03 will likely dictate near-term direction.

A strategy purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term price movements, particularly in dynamic market conditions.