Breakfast News: Inflation Fears Prompt Fed Warning

Breakfast News: Inflation Fears Prompt Fed Warning

March 19, 2026

Source: Image created by Jester AI.

1. Stocks Sink as Powell Flags Uncertainty

The Dow Jones fell 1.63% yesterday, on course for its worst month since 2022, as Federal Reserve Chair Jerome Powell flagged elevated uncertainty and the potential for higher inflation as part of the latest central bank meeting, as officials voted to hold interest rates steady in an 11-1 split.

• “Near-term measures of inflation expectations have risen in recent weeks”: Powell said the bank wasn’t making as much progress on inflation as had been hoped, although he noted it was too soon to know the exact impact of the conflict in the Middle East on prices.
• Updated dot plot suggests one cut in 2026 and one in 2027: Before the conflict, markets had been expecting at least two rate reductions this year, with the pushback on expectations being a factor in the S&P 500 closing 1.36% lower.

2. RKLB Lifts on Record Defense Deal

Rocket Lab (RKLB +3.48%) rose over 2% ahead of the opening bell after news broke of a U.S. Department of War contract win worth $190 million over four years, the largest single launch contract in the company’s history.

• “Another proud moment for the team that builds the strength and resiliency of the United States’ aerospace efforts”: CEO Sir Peter Beck pointed to Rocket Lab’s advanced technology and mass production capabilities of hypersonic rockets, with its total order backlog now standing at more than $2 billion.
• “It has the potential to become one of the defining companies of a new space era”: Motley Fool co-founder and CEO Tom Gardner and contributing analyst Lou Whiteman spoke about the Stock Advisor Foundational Stock from Team Hidden Gems earlier this week, saying “Rocket Lab’s advantage is providing everything that a customer needs from satellite design to construction to launch.”

3. Thursday’s Main Pre-Market Movers

• **Micron Technology **(MU 3.71%) fell over 5% despite posting record revenue and profit, as the high bar of investor expectations failed to be met, along with some concern whether it can keep up with memory demand.
• **Five Below **(FIVE +10.68%) soared almost 7% as quarterly earnings impressed. Comparable sales rose 15.4%, nearly double the high end of management’s guidance. The stock is narrowly beating the S&P 500 by 2% since the April 2024 Rule Breakers rec.
• DLocal (DLO +9.43%) popped more than 7% thanks to results detailing an 87% surge in net income. CEO Pedro Arnt spoke of “strong customer loyalty and retention, a growing capacity to innovate, and an asset-light, high-cash-conversion financial model” as contributing factors.

4. Pillars of Global Commerce to Report

• Alibaba (BABA 7.02%) fell around 5% ahead of the opening bell as results showed a 57% fall in adjusted EBITDA, partly attributable to higher investments in user experience and technology. AI-related product revenue delivered triple-digit growth for the tenth consecutive quarter.
• FedEx (FDX +1.82%) reports after the closing bell, with the Stock Advisor rec by Team Rule Breakers hoping to build on the strong previous quarter. Analysts expect revenue to rise by 6%, although increased fuel costs due to Middle East tensions could be mentioned.
• **Accenture **(ACN +4.11%) fell about 3% before the market opened as the company forecast revenue for the upcoming quarter below expectations. However, CEO Julie Sweet said “new strategic acquisitions will further strengthen our capabilities.” The stock is recommended by both Team Hidden Gems and Team Rule Breakers.

5. Your Take

Accenture, **IBM **(IBM 0.49%), and **Kyndryl **(KD 0.28%) are competing businesses that cooperate in certain areas – a relationship best described as “co-opetition”

If your portfolio comprised just these three companies, and you bought each of them at the start of the year with the same amount of money, and had to buy more shares in one, completely close your position in another, and hold the final stock, what are you choosing to do and why?

Debate with friends and family, or become a member to hear what your fellow Fools are saying!