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Micron Reports After the Bell: Can the AI Memory Boom Keep Beating a Very High Bar?

Wall Street is heading into the close on Wednesday with two things on its mind: the Fed's favorite inflation gauge and Micron Technology. According to Bloomberg, US stocks paused ahead of both, with the inflation data key for interest rates and Micron's report key for the AI trade. Micron reports fiscal fourth-quarter results after the closing bell, and a big move in either direction could ripple into Asian chip stocks when markets open in the morning. The Numbers, Verified Across Sources What Micron guided (SEC filing): For the quarter ending in August, Micron told investors to expect revenue of $50 billion, give or take $1 billion, non-GAAP earnings of $31 per share, give or take $1, and a gross margin of about 86%. What analysts expect (Alphastreet, 33 analysts): Consensus sits at $31.56 per share on $51.20 billion in revenue, slightly above the top half of Micron's own guidance range. Estimates are wide, running from $28.04 to $37.44 per share for earnings and from...
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Fed Officials Are Already Signaling More Rate Hikes Are Coming

Just over a week after the Federal Reserve raised interest rates for the first time since 2023, two senior Fed officials are already hinting the central bank isn't done tightening.

What Was Said

Philadelphia Fed President Anna Paulson said this week that the September rate hike which pushed the benchmark rate to a range of 3.75%-4.00% "brings policy closer to what I believe is needed to return inflation to 2%," adding that "some modest further tightening may be warranted" if conditions evolve as expected.

New York Fed President John Williams echoed the sentiment, suggesting the Fed will likely need to raise rates again before the year is out.

Federal Reserve building with rising interest rate chart signaling more rate hikes ahead

Why This Matters

Markets had been hoping the September hike might be a one-and-done move. These comments suggest otherwise inflation, still running above the Fed's 2% target, remains the priority, even at the cost of higher borrowing costs across the economy.

For anyone with a mortgage, credit card balance, business loan, or auto loan tied to variable rates, this is a signal that relief isn't imminent. It also adds fuel to the Treasury yield rally we covered yesterday expectations of further hikes are part of why 30-year yields just hit a 19-year high.

Detail Information
Current Fed Rate 3.75% - 4.00%
Last Rate Hike September 16, 2026
Officials Signaling More Hikes Anna Paulson (Philadelphia Fed), John Williams (NY Fed)
Reason Cited Inflation still above 2% target
Expected Timing Before end of 2026

What Investors Should Do With This Information

It also adds fuel to the [Treasury yield rally we covered yesterday] expectations of further hikes are part of why 30-year yields just hit a 19-year high.

Nothing dramatic, honestly. Trying to reposition a portfolio around Fed speeches is a reliable way to get whipsawed by noise official comments this far ahead of an actual decision are directional hints, not commitments. The more useful takeaway is simply this: if you've been assuming rate cuts are right around the corner, it may be worth adjusting that assumption, particularly for any near-term borrowing decisions.

For long-term investors already holding a diversified portfolio, this is one more data point to note and move on from, not a reason to make emotional changes.

This post is for general informational purposes and isn't personalized financial advice. Please consult a licensed financial advisor before making investment or borrowing decisions.

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