Investing.com-- U.S. stocks fell Friday, weighed by disappointing corporate results while investors gauged the outlook for future Federal Reserve policy.

At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average fell 345 points, or 0.8%, the S&P 500 index slipped 55 points, 1%, and the NASDAQ Composite dropped 200 points, or 1.1%.

Fed offers mixed cues

The U.S. central bank gave markets fleeting relief this week, after keeping interest rates unchanged, as widely expected. But Fed policymakers raised their inflation forecast and cut the growth outlook for 2025.

While the Fed did maintain its projections of at least 50 basis points of rate cuts this year, its expectations of higher inflation cast some doubt over this outlook. The central bank expects inflation to trend further above its 2% target this year.

The central bank said it remained uncertain over just how Trump’s tariffs will impact the U.S. economy, especially on the inflation front.

A decision by the European Union to delay the imposition of retaliatory tariffs on U.S. whiskey bolstered hopes that talks between Brussels and Washington could avert a damaging trade conflict between the two major trading partners. The EU has said the postponement will help buy time for discussions with the U.S.

FedEx cuts outlook

In the corporate sector, shares in FedEx (NYSE: FDX ) stock slumped 10% after the parcel delivery company cut its annual profit and revenue outlook.

In a statement, CFO John Dietrich said the reduction was due to "continued weakness and uncertainty in the U.S. industrial economy" that is weighing on demand for its business.

Nike (NYSE: NKE ) stock slipped over 7% after fiscal fourth-quarter revenue estimate came in below analysts’ expectations.

Micron Technology (NASDAQ: MU ) stock slumped over 6%, reversing earlier gains after the provider of memory and storage solutions forecast third-quarter revenue above Wall Street estimates, signaling strong demand for its high-bandwidth memory chips used in AI models.

Lennar Corporation (NYSE: LEN ) stock fell 5% after the housebuilder’s first-quarter profits took a hit as high borrowing costs and shaky consumer confidence weighed heavily on its housing business.

Crude on course for weekly gain

Oil prices slipped lower Friday, but remained on course for gains for the second consecutive week, as fresh U.S. sanctions against Iran and plans to cut production by a group of major producers pointed to tighter supplies in the coming months.

At 09:35 ET, Brent crude futures fell 0.5% to $71.63 a barrel, and U.S. West Texas Intermediate crude dropped 0.4% to $67.81 a barrel.

On a weekly basis, both contracts were on track to register gains of around 2%, their biggest weekly gains since the first week of 2025.

The U.S. on Thursday issued new sanctions against Iran as part of its goal to deter Tehran from developing a nuclear weapon, targeting an independent Chinese refinery and several oil tankers - which Washington claims are a part of Iran’s “shadow fleet” of vessels.

Additionally, the Organization of Petroleum Exporting Countries and allies, known as OPEC+, said that seven of its member states will cut output to make up for recent production increases.

The plan will entail monthly cuts of between 189,000 and 435,000 barrels per day, and will last until June 2026.

(Ambar Warrick contributed to this article.)