The Federal Reserve held its benchmark rate steady at 3.50%–3.75% for a third straight meeting yesterday, sending markets sharply down as the decision did little to clarify the path forward. Tariff-driven inflation remains above the Fed's +2% target, Middle East tensions are adding to the uncertainty, and Powell indicated that without further progress on inflation, rate cuts are off the table. The updated projections left the median rate path largely unchanged, with one cut still expected in 2026, though the core inflation forecast for that year was nudged higher to +2.7%.
Micron Slips on Profit Taking Despite Blockbuster Quarter
Micron (MU) is down over -5% in premarket trading despite tripling revenue last quarter and delivering guidance far ahead of expectations, with the move attributed to profit taking after a +350% run over the past 12 months. Peer memory names Western Digital (WDC), Sandisk (SNDK), and Seagate (STX) also dipped in sympathy. Analysts remained broadly bullish, citing memory's expanding role in AI infrastructure and pricing expected to remain elevated into 2027.
Alibaba Revenue and Profit Miss Overshadow AI Cloud Momentum
Alibaba (BABA) is down over -4% in premarket trading after Q3 revenue of 285B yuan missed the 291B yuan consensus, with net income plunging -66% YoY to 16B yuan as heavy investments in quick commerce and technology weighed on operating income. Cloud revenue grew +36% YoY, coming in 1% above consensus, with AI-related product revenue delivering triple-digit growth for the tenth consecutive quarter, though Citi noted market expectations were even higher. BABA continues to invest heavily in AI and cloud infrastructure as it looks to transition from e-commerce giant to AI leader.
Klarna Loses Several Executives Amid Sharp Stock Decline
Klarna (KLAR) was down -10% yesterday and has seen a wave of recent executive departures. These include its head of investor relations and M&A, its global head of litigation, and an engineering director and head of AI and automation who left earlier this year. The exits come as KLAR's stock has fallen -67% from its $40 IPO price since beginning trading on Sept. 9, 2025. Chairman Michael Moritz did purchase 3.5M shares for ~$50M on March 13, though.
NHTSA Escalates Tesla FSD Probe
Tesla (TSLA) shares fell -1% in premarket trading as federal regulators opened a formal engineering analysis into TSLA's Full Self-Driving (FSD) system, covering 3.2M vehicles. NHTSA found the system fails to detect or adequately warn drivers when cameras are impaired by sun glare, fog, or dust in several crashes, including one fatal, where alerts came too late to react. The deeper review could lead to a recall or other enforcement action.
