Fed holds rates steady, Micron's revenue doubles, Tencent shifts focus to AI investment.

Federal Reserve Maintains Stance Amid Uncertain Middle East Impact

The Federal Reserve has decided to keep interest rates unchanged, citing the uncertain impact of the Middle East situation and raising inflation expectations. They still anticipate one rate cut this year, with only one dissenting vote from Governor Milan, who advocates for a 25 basis point cut. The statement now includes concerns about the Middle East's effect on the U.S. economy and describes the unemployment rate as "essentially unchanged."

Economic Projections and Inflation Expectations

The Fed has revised its GDP expectations for this year and the next, with inflation forecasts raised to 2.7% and 2.2% for this year and next, respectively. The dot plot indicates that seven members expect no rate cuts this year, while twelve anticipate at least one. One member predicts a rate hike next year.

Escalating Middle East Conflict Affects Oil Prices

The ongoing conflict between Iran and Israel has led to attacks on major energy facilities in the Middle East, significantly impacting oil prices. The Iranian Pars gas field was attacked, marking a major escalation in the conflict and pushing oil prices higher. Tehran has vowed to target all oil and gas facilities in the Gulf region.

U.S. Stock Market Declines

On March 18, U.S. stock indices fell over 1%, ending a two-day rally. The Dow Jones dropped 1.63%, the S&P 500 fell 1.36%, and the Nasdaq decreased by 1.46%. Major tech stocks like Nvidia, Google, and Apple all saw declines.

Gold Prices Drop Amid Inflation Concerns

Gold prices fell below $4900 as inflation worries intensified, leading to a hawkish outlook from the Fed. Despite the ongoing Middle East conflict, gold, traditionally a safe-haven asset, has not performed well due to high interest rates.

Tencent Music Faces User Losses Despite Revenue Growth

Tencent Music reported total revenue of 32.9 billion yuan for the year, but the stock plummeted 24.65% in a single day due to a 5% year-on-year decline in monthly active users. The market is increasingly concerned about user retention.

AMD and Samsung Expand Collaboration

AMD and Samsung have signed a memorandum to enhance their strategic partnership in AI infrastructure memory chips, focusing on the next-generation HBM4 memory for AMD's upcoming AI accelerators.

Upcoming Financial Reports

Key financial reports are expected soon, including those from AIA Group, China Unicom, and Alibaba, with significant market attention on their performance.