Wednesday, March 18th, 2026
Main market indexes all took a slide this afternoon — already buying and selling within the purple as of the information launch from the most recent Fed assembly on rates of interest — largely on feedback from Fed Chair Jerome Powell relating to rate of interest cuts not essentially forthcoming. That is within the wake of unsure world financial developments and higher-than-expected inflation experiences, together with this morning’s Producer Value Index (PPI) for February.
Consequently, indexes closed at session lows: the Dow -768 factors, -1.63%, the S&P 500 -91 factors, -1.36%, the Nasdaq -327 factors, -1.46% and the small-cap Russell 2000 -41 factors, -1.65%. All indexes are down month-to-date, with out a number of shiny mild shining within the distance.
Fed Retains Curiosity Charges at +3.50-3.75%, as Anticipated
There was no change in rates of interest from this week’s Federal Open Market Committee (FOMC) assembly this afternoon, with the committee maintaining charges at +3.50-3.75%, the place they’ve been since December. Just one voting member dissented, Fed Governor Stephen Miran, who once more referred to as for a 25 bps price minimize.
The FOMC considers the general U.S. financial system continues to maneuver alongside at a stable tempo. That mentioned, the Fed’s new dot-plot calls for only one price minimize this yr and one in 2027. The long-run impartial price has bumped up 10 foundation factors (bps) to +3.1%. For sure, we stay off-target from Powell’s optimum inflation price of +2.0%.
After all, Powell’s tenure is probably going near its conclusion, with former Fed governor (and sometimes dissenting vote in Ben Bernanke’s Fed) Kevin Warsh already ready within the wings. Nevertheless, an investigation about misappropriated funds on the Fed — subpoenas of which have been quashed by a federal decide simply final week — and a congressional protest threatened if the DOJ doesn’t drop its investigation (my, how “Actuality TV” all of it is!) are maintaining issues murky, to say the least. Powell mentioned in the present day he would keep on in a “pro-tem” foundation if Warsh is just not confirmed to switch him.
Again to the breakdown of this FOMC assembly, seven Fed members advocated holding charges regular this yr, with no raises or cuts. Twelve members mentioned they need at the least one 25 bps-cut by the tip of 2026, whereas 5 members are in search of two or extra cuts. In Powell’s phrases, nonetheless, “If we don’t see progress on inflation, we gained’t see a price minimize.” And: “Increased vitality costs will push up total inflation within the close to time period.”
The FOMC sees inflation ticking up from the final dot-plot: +2.7% for the March assembly, up 30 bps from +2.4% from December. Core can be +2.7%, up 20 bps from the final print. Powell acknowledged, “We now have seen extra provide shocks to the market within the final 5 years than in a few years earlier than that.” He’s clearly citing the Iran battle, Russia’s invasion of Ukraine in 2022, and the Covid pandemic from 2020 and past, to call only a few.
Micron Destroys Earnings Estimates in Q2
Zacks Rank #1 (Robust Purchase)-rated Micron Know-how MU blew away Zacks estimates this afternoon in its fiscal Q2 earnings report launched after the closing bell. Earnings of $12.20 per share have been greater than 7x increased than the corporate’s year-ago tally of $1.56, whereas revenues have been practically 3x the place they have been in fiscal Q2 final yr. Non-GAAP Gross Margins reached +74.9%, properly increased than the +68.9% projected.
Steering for the continued Q3 is at the least nearly as good: +50% on earnings to $19.15 per share (+/- 40 cents) and roughly +35% on revenues to $32.5 billion (+/- $740 million). The AI commerce has clearly been excellent for Micron. Shares initially dipped -1.2% on the information, however are again up barely at this hour. The inventory has gained practically +62% for the reason that begin of this yr.
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