This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The Fed cut its key interest rate by 25 basis points on Wednesday, taking its overnight borrowing rate to a target range of 4.25%-4.5%.
In the Fed's dot plot indicating expectations for rates in the years ahead, the central bank mostly indicated that monetary policy in 2025 will remain tighter than previously forecast. While shares are still up 75% since the elections on Nov. 5, the company's stock seems 'widely disconnected … from fundamentals,' Barclay analysts wrote in a report on Wednesday., even though it beat expectations on earnings for its last quarter. For the current quarter, Micron expects revenue to come in around $7.9 billion. That's far less than the $8.98 billion expected by analysts, according to LSEG.The stock market took a battering after digesting the Fed's forecast. CNBC's Sarah Min looks at why Wednesday's dramatic sell-off in markets is a stark reminder that forecasts influence stock movements much more than current circumstances. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly The Fed cut its key interest rate by 25 basis points. Borrowing costs will go down and corporate investment should be stimulated, which should lead to job creation and boost growth. That, in turn, theoretically pushes up stocks. But investors were already confident about the Fed's cut Wednesday. Prior to the conclusion of the Fed's December meeting, the futures market indicated a 98% chance of a 25 basis points cut, according to the. That means investors had already priced in the benefits of the rate reduction into stocks. In other words, yesterday's cut would have little bearing on stock price