Federal Reserve Holds Rates Steady Amid Inflation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Source: CNBC
- Fed Policy Update: The Federal Reserve decided to keep interest rates unchanged at its latest monetary policy meeting, with Chair Powell expressing concerns that inflation has not retreated as hoped, which led to a drop in the Dow Jones to its lowest level of the year, indicating market caution regarding economic outlook.
- Oil Price Volatility: Brent crude futures briefly topped $119 due to Iranian strikes on key energy infrastructure in the Middle East, prompting President Trump to issue a 60-day waiver of the Jones Act to stabilize the volatile oil markets, highlighting government concern over oil price fluctuations.
- Micron's Earnings Surprise: Micron's quarterly revenue nearly tripled year-over-year and is expected to grow over 200% in the current quarter, yet shares fell more than 5% as investors took profits after a 350% stock run, reflecting mixed market sentiment about its future growth potential.
- Amazon-Postal Service Negotiations: Amazon clarified its position regarding reports of reducing package volumes through the U.S. Postal Service, stating it aims to increase volumes under a new agreement, while the Postal Service's contract with Amazon is set to expire at the end of September, indicating tension in their negotiations.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 238.000
Low
175.00
Averages
280.01
High
325.00
Current: 238.000
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bezos' AI Startup Prometheus Secures $12B Funding Round
- Funding Achievement: Bezos' startup Prometheus has completed a $12 billion Series B funding round, elevating its valuation to $41 billion, reflecting strong market confidence in its AI-driven engineering solutions.
- Technological Vision: Prometheus focuses on developing AI software that optimizes engineering and manufacturing processes, with Bezos stating that this is a crucial step towards realizing the dream of an artificial general engineer, which is expected to significantly enhance engineers' productivity.
- Investment Background: Bezos has invested $6.2 billion in Prometheus, with other investors including BlackRock, Goldman Sachs, and JPMorgan, indicating the project's attractiveness and potential in the tech investment landscape.
- Industry Regulation: Bezos emphasizes the need for moderate government regulation in the AI sector to ensure safety and product quality, believing this will foster healthy industry development and prevent excessive restrictions on new tools.
See More
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- Widespread Economic Impact: As data center construction has been a major driver of GDP growth in Q1, the power shortage not only affects the AI sector but could also negatively impact the broader economy, hindering future growth prospects.
- Water Resource Concerns: Hyper-scale data centers have massive water consumption needs, estimated at 1 to 5 million gallons per day, with Amazon disclosing a usage of 2.5 billion gallons last year, raising concerns about resource consumption in the market.
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See More
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- Strategic Positioning: Mistral aims to establish itself as a European leader in AI by building data centers and focusing on enterprise-level AI deployment, enhancing its competitiveness against global players like OpenAI and Anthropic.
- Technological Development: The company not only relies on Nvidia chips but also revealed its exploration of designing its own chips for the first time, a move aimed at increasing its technological autonomy and reducing dependence on external suppliers.
- Market Outlook: Although CEO Mensch noted that there is still resistance to AI adoption within enterprises, he believes this presents significant opportunities for future value creation, indicating the company's long-term growth potential in the AI sector.
See More
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- Enterprise AI Rollout: Mistral is focusing on promoting AI across various industries, particularly through its product called Vibe, which combines a chatbot with coding tools, driving automation in business processes and expected to change organizational structures and workflows.
- Market Value Creation Potential: Mensch noted that there is still a lot of “viscosity” in AI adoption among enterprises, indicating significant opportunities for value creation, and businesses should reassess processes related to AI systems to achieve greater efficiency and innovation.
- Data Center Construction: Mistral is building data centers to support the operation of its AI models, heavily relying on Nvidia chips; this initiative not only enhances computational capabilities but also lays the groundwork for future technological expansion, demonstrating the company's long-term commitment to the AI market.
See More
Hedge Funds Exit Major U.S. Tech Stocks
- Hedge Fund Activity: According to a JPMorgan report, many hedge funds sold off major U.S. tech stocks and even added bearish positions ahead of SpaceX's IPO, indicating a cautious market sentiment towards tech equities.
- Tech Stock Decline: Since last Friday, the so-called 'Magnificent Seven' tech stocks, including Nvidia, Apple, and Amazon, have all declined, with the Roundhill Magnificent Seven ETF dropping over 2.4% since June 5, reflecting investors' preparations for SpaceX's debut.
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- Shifting Market Sentiment: Analysts note that investors are clearing their portfolios in anticipation of SpaceX's IPO, a dynamic that may impact the short-term performance of other tech stocks, reflecting a heightened focus on emerging tech companies.
See More
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- Tech Stock Sell-Off: According to JPMorgan data, hedge funds reduced their holdings in the 'Magnificent Seven' tech stocks, including Nvidia, Apple, and Amazon, leading to a decline of over 2.4% in the Roundhill Magnificent Seven ETF since June 5, indicating a risk-off sentiment among investors ahead of SpaceX's IPO.
- Market Sentiment Shift: Despite the sell-off in major tech stocks, some speculators opted to buy the dip, reflecting expectations for a short-term rebound; however, overall market sentiment remains cautious, particularly as software stocks faced significant selling pressure.
- Strong Financial Sector Performance: Financial-themed ETFs emerged as the most purchased investment choice over the past week, benefiting from seasonal trends that favor financial stocks, although hedge funds displayed mixed attitudes towards bank stocks, with some opting to sell.
- Insurance Sector Under Pressure: While hedge funds have recently increased their positions in insurance stocks, the sector has faced 'heavy selling' this year, indicating a lack of confidence among investors and a significant reduction in wagers on these companies.
See More
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- Funding Achievement: Bezos' startup Prometheus has completed a $12 billion Series B funding round, elevating its valuation to $41 billion, reflecting strong market confidence in its AI-driven engineering solutions.
- Technological Vision: Prometheus focuses on developing AI software that optimizes engineering and manufacturing processes, with Bezos stating that this is a crucial step towards realizing the dream of an artificial general engineer, which is expected to significantly enhance engineers' productivity.
- Investment Background: Bezos has invested $6.2 billion in Prometheus, with other investors including BlackRock, Goldman Sachs, and JPMorgan, indicating the project's attractiveness and potential in the tech investment landscape.
- Industry Regulation: Bezos emphasizes the need for moderate government regulation in the AI sector to ensure safety and product quality, believing this will foster healthy industry development and prevent excessive restrictions on new tools.
See More
AI Data Centers Face Existential Energy Crisis
- Power Supply Shortage: George Gianarikas from Canaccord Genuity highlights that the current power supply constraints are severely hindering data center construction in the U.S., with half of the centers expected to remain unbuilt this year, posing significant risks to AI hyperscaler ambitions.
- Widespread Economic Impact: As data center construction has been a major driver of GDP growth in Q1, the power shortage not only affects the AI sector but could also negatively impact the broader economy, hindering future growth prospects.
- Water Resource Concerns: Hyper-scale data centers have massive water consumption needs, estimated at 1 to 5 million gallons per day, with Amazon disclosing a usage of 2.5 billion gallons last year, raising concerns about resource consumption in the market.
- Nuclear Energy Resurgence: Although there is a growing interest in nuclear energy, Gianarikas believes that transitioning to nuclear power will take considerable time, meaning that power and water shortages will continue to pose significant risks to AI infrastructure development in the near term.
See More
Mistral Raises Over $100 Million to Compete in AI Market
- Funding Achievement: Mistral successfully raised over $100 million within just four weeks of its inception, despite having no product or marketing efforts, which provides a solid foundation for its entry into the competitive AI market.
- Strategic Positioning: Mistral aims to establish itself as a European leader in AI by building data centers and focusing on enterprise-level AI deployment, enhancing its competitiveness against global players like OpenAI and Anthropic.
- Technological Development: The company not only relies on Nvidia chips but also revealed its exploration of designing its own chips for the first time, a move aimed at increasing its technological autonomy and reducing dependence on external suppliers.
- Market Outlook: Although CEO Mensch noted that there is still resistance to AI adoption within enterprises, he believes this presents significant opportunities for future value creation, indicating the company's long-term growth potential in the AI sector.
See More
Mistral Explores Own Chip Design and AI Market Outlook
- Own Chip Design Exploration: Mistral CEO Arthur Mensch revealed for the first time that the company is exploring the possibility of designing its own chips, aiming to enhance control over its technology stack, thereby improving the performance and efficiency of its AI models, similar to strategies employed by Google and Amazon.
- Enterprise AI Rollout: Mistral is focusing on promoting AI across various industries, particularly through its product called Vibe, which combines a chatbot with coding tools, driving automation in business processes and expected to change organizational structures and workflows.
- Market Value Creation Potential: Mensch noted that there is still a lot of “viscosity” in AI adoption among enterprises, indicating significant opportunities for value creation, and businesses should reassess processes related to AI systems to achieve greater efficiency and innovation.
- Data Center Construction: Mistral is building data centers to support the operation of its AI models, heavily relying on Nvidia chips; this initiative not only enhances computational capabilities but also lays the groundwork for future technological expansion, demonstrating the company's long-term commitment to the AI market.
See More
Hedge Funds Exit Major U.S. Tech Stocks
- Hedge Fund Activity: According to a JPMorgan report, many hedge funds sold off major U.S. tech stocks and even added bearish positions ahead of SpaceX's IPO, indicating a cautious market sentiment towards tech equities.
- Tech Stock Decline: Since last Friday, the so-called 'Magnificent Seven' tech stocks, including Nvidia, Apple, and Amazon, have all declined, with the Roundhill Magnificent Seven ETF dropping over 2.4% since June 5, reflecting investors' preparations for SpaceX's debut.
- SpaceX IPO Outlook: SpaceX is projected to post a net loss of $4.94 billion in 2025, yet its IPO targets a valuation of $1.77 trillion, which would make it the seventh-largest publicly traded U.S. company, showcasing market expectations for its future growth.
- Shifting Market Sentiment: Analysts note that investors are clearing their portfolios in anticipation of SpaceX's IPO, a dynamic that may impact the short-term performance of other tech stocks, reflecting a heightened focus on emerging tech companies.
See More
Hedge Funds Reduce Holdings in Major U.S. Tech Stocks
- Tech Stock Sell-Off: According to JPMorgan data, hedge funds reduced their holdings in the 'Magnificent Seven' tech stocks, including Nvidia, Apple, and Amazon, leading to a decline of over 2.4% in the Roundhill Magnificent Seven ETF since June 5, indicating a risk-off sentiment among investors ahead of SpaceX's IPO.
- Market Sentiment Shift: Despite the sell-off in major tech stocks, some speculators opted to buy the dip, reflecting expectations for a short-term rebound; however, overall market sentiment remains cautious, particularly as software stocks faced significant selling pressure.
- Strong Financial Sector Performance: Financial-themed ETFs emerged as the most purchased investment choice over the past week, benefiting from seasonal trends that favor financial stocks, although hedge funds displayed mixed attitudes towards bank stocks, with some opting to sell.
- Insurance Sector Under Pressure: While hedge funds have recently increased their positions in insurance stocks, the sector has faced 'heavy selling' this year, indicating a lack of confidence among investors and a significant reduction in wagers on these companies.
See More
