Meta Platforms stock surged 7-11% Monday after Wells Fargo raised its price target to $796, citing bullish sentiment around the company's newly launched Muse AI agent. The analyst upgrade ahead of Meta Connect suggests investor optimism about potential new revenue streams from the AI assistant's paid subscription tiers.
Micron Technology stock has surged 256% in 2026 and is positioned for further gains following its September 30 earnings report, driven by strong AI infrastructure spending projected to reach $31.6 trillion cumulatively through 2050 and persistent memory chip shortages that favor pricing and volume growth.
Fed Chair Kevin Warsh and the FOMC raised the federal funds rate by 25 basis points to 3.75%-4.00% on September 16, the first hike since July 2023, signaling more increases ahead as the central bank pursues faster progress toward its 2% inflation target. Stock markets reacted negatively, with the Dow falling over 1%, though historical patterns suggest outcomes may differ from initial expectations.
Federal Reserve Chairman Kevin Warsh raised the federal funds rate by a quarter point in his third FOMC meeting, marking the first rate hike since 2023. Historically, rate-hiking cycles trigger an average 14% drawdown in the S&P 500 within 12 months, though the decline may not occur immediately and recovery typically follows as markets digest the effects on corporate earnings and inflation.
Broadcom reported Q3 earnings that beat analyst expectations, but investors focused on a weaker forward guidance. More significantly, the company announced that Anthropic, maker of the Claude AI model, is on track to become its largest customer by 2027, surpassing Google, with purchases of Ironwood TPU chips expected to grow from 1 gigawatt in 2026 to 5 gigawatts in 2027.