S&P 500, Dow futures back away from records as Fed cheer fizzles

US stocks were poised for a retreat from record highs on Friday as rate-cut euphoria faded, with FedEx (FDX) earnings providing a reality check.

S&P 500 futures (ES=F) fell roughly 0.3%, after the benchmark index ended at an all-time high. Dow Jones Industrial Average futures (YM=F) traded steady on the heels of notching its own record close. Leading the way lower, contracts on the tech-heavy Nasdaq 100 (NQ=F) dropped 0.5%.

Stocks surged on Thursday as investors embraced Chair Jerome Powell’s message that the Federal Reserve made a big interest-rate cut to support the economy, not to save it — an idea bolstered by jobless claims data.

That roaring rally is now sputtering amid reminders that risks to growth could still lie ahead. Wall Street is still wondering whether the Fed has fallen behind in keeping the economy on track for a “soft landing”. Traders are pricing in deeper cuts this year than policymakers’ “dot plot” projects, per Fed Funds futures.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Also, those Fed-fueled high spirits are stoking the risk of a bubble, according to a top Bank of America strategist. Michael Hartnett said stocks are pricing in levels of policy easing and earnings growth right now that push investors to go chasing for gains.

Late Thursday, FedEx posted a sharp drop in profit, missing Wall Street estimates. The delivery company— a bellwether for the economy — saw Its shares slump almost 14% in premarket trading.

Elsewhere, Nike’s (NKE) stock jumped after the sportswear maker named a new CEO as its sales come under pressure.