Fidelity Investments is down almost 4 per cent to $3.94 per share on the Nasdaq amid the US stock market collapse.
Fidelity said Thursday that it expects a 2 per cent decline in the value of its U.S. stock market holdings next year.
FTSE 100 index futures fell 1.7 per cent in morning trading to 1,037.60.
The Dow Jones industrial average dropped 3.7 points, or 0.3 per cent, to 17,739.84.
The S&P 500 index lost 2.5 points, falling 0.6 per cent.
On Thursday, Fidelity fell 1 per cent after the company reported an 18 per cent year-over-year drop in the price of its investment grade bond products.
Firms with a “favorable” outlook for the stock market include American Airlines, Chevron, IBM and Apple.
FBS analyst Michael C. Smith said that while Fidelity was down, he believes the stock’s weakness was largely attributable to a weaker dollar and the slowing pace of economic growth in the U.K. and other countries.
“The stock price has been on a downward trajectory for a while,” Smith said.
“Fidelity’s exposure is very modest in the longer term.
In my view, the underlying weakness in the stock is more likely a result of the lower U.N. growth than a result from any specific issue.”
Fidelity, which is based in New York, has more than a $5-billion (2.9-billion-pound) market cap, according to Thomson Reuters.
Shares of Fidelity rose 1.6 cents, or 2.7 pence, to $26.19 on the New York Stock Exchange.
A benchmark index fund with an average dividend of 1.4 cents per share gained 2.1 cents, to 0.85 pence.
The Fidelity fund had been up 1.8 per cent at the start of the trading day.
FEDRA index FTSEurofirst 500 index (FFSXX) gained 2 per to 2,965.30.
The index is the benchmark for European bonds.
The European economy grew at an annualized rate of 3.1 per cent during the first quarter, down from 3.4 per cent the previous year.
This year, the economy has contracted at a 1.9 per cent annual rate, according the OECD.
The global economy is projected to grow by just 1 per.5 per cent this year, according data from the IMF. In the U