Wall Street Breakfast BoE fear hits Fed bets
12 snips
Mar 19, 2026 Markets scramble as central bank moves erase hopes for Fed rate cuts and send gilt yields spiking. A hawkish turn in BoE policy and debate over policy risks dominate the headlines. Alibaba reports big misses amid heavy AI spending. Retail sales and commodity swings move stocks while Oscars viewership dips and global music revenue keeps growing.
AI Snips
Chapters
Transcript
Episode notes
Markets Drop Fed Cut Bets After Global Hawkish Turn
- Markets have nearly abandoned expectations for Fed rate cuts in 2026 after a string of hawkish central bank signals.
- The BOE's hawkish shift plus hawkish-leaning FOMC and BOJ hold pushed Fed funds futures to price rates unchanged or higher for 2026.
BoE Hawkish Pivot Lifts Gilt Yields
- The Bank of England signaled a hawkish pivot, pricing in roughly 60 basis points of hikes after previously expecting cuts.
- Near-term gilt yields hit 52-week highs and the BOE's tone raised fears of a policy mistake given a fragile labor market.
Alibaba's AI Spending Hits Profits
- Alibaba missed wide on revenue and profit as heavy AI investments depressed net income by 67% year over year.
- Cloud revenue grew 36% year over year but lags Microsoft's 39% growth from a much larger base, raising investor concerns.