Fastly rips 14% on its all-in AI investor day

Welcome to LazyListen. This is The Daily Rip for today. Stocks slipped again Wednesday, marking the fifth decline in seven sessions, as bond yields surged and inflation worries deepened.

The 10-year Treasury yield climbed above five point one percent for the first time since 2007, driven by a surprisingly strong September Purchasing Managers Index reading that showed the fastest expansion in private manufacturing and services in five years. This hot data reinforced expectations that the Federal Reserve will continue raising rates, with markets now pricing in about a seventy-three percent chance of another hike at the October meeting. Meanwhile, oil prices holding near ninety-two dollars a barrel aren’t helping ease inflation concerns.

On the trade front, all eyes are on the upcoming summit between Presidents Trump and Xi, set for Thursday. The agenda includes artificial intelligence, trade tensions, and Taiwan—topics that could influence market sentiment depending on the outcomes. -driven growth targets.

Fastly laid out plans to reach between one point one and one point three billion dollars in revenue by 2029, aiming for annual growth of fourteen to twenty-one percent and operating margins around twenty to twenty-two percent. I. I.

I. Runtime Control, and API Security—designed to manage traffic that’s reportedly growing more than six times faster than human-driven internet activity. Wall Street responded with cautious optimism: some analysts raised price targets slightly but flagged the wide revenue range and high valuation multiples as reasons to hold back.

Traders are watching the thirty-dollar level as a key milestone for the stock. Meanwhile, McDonald’s faced a tougher reception after its investor day. The fast-food giant warned that inflation is “the new normal,” with beef prices up fourteen percent last year and nearly doubled over five years.

The company’s CEO said inflation will remain elevated for many years, dampening hopes for strong traffic growth. McDonald’s unveiled an ambitious eight point five billion dollar investment plan through 2036, targeting operating margins in the low to mid-fifties by 2030 and aiming for market share gains in chicken and beverages. Despite the long-term strategy, the market reacted negatively to the combination of flat traffic guidance and heavy spending, sending shares down nearly five percent to a 52-week low.

The stock has now fallen in nine of the last eleven sessions and is back to levels not seen since July 2024, breaking technical support bands for the first time since the COVID crisis. Over in China, Alibaba’s shares dropped almost five percent amid a data-security probe that’s rattling the tech sector. I.

I. company behind the Claude model. S.

S. I. model capabilities on an industrial scale, raising the specter of sanctions or blacklisting.

I. I. capacity by 2032.

Traders are split ahead of Thursday’s Trump-Xi summit, with some bullish on a post-meeting rally toward one hundred thirty dollars, while others remain cautious after the stock fell from around one hundred twenty to about one hundred eleven dollars in just two days. The bond market’s move was the big story for macro investors. The 10-year Treasury yield’s jump above five percent—the highest in nearly two decades—reflects growing confidence that the Fed will keep tightening.

The two-year yield hit just under five percent, and the 30-year touched five point four percent. This repricing pressured growth stocks, with Alphabet’s shares falling nearly four percent as investors adjusted to a higher-rate environment. Looking ahead to Thursday, keep an eye on several key economic events: New York Fed President John Williams will speak early in the session, followed by weekly jobless claims and remarks from Cleveland and Philadelphia Fed Presidents.

These data points and speeches could influence expectations for the Fed’s next moves. On the earnings front, pre-market reports include BlackBerry, Kandi Technologies, Wimi Hologram Cloud, Uxin, and Darden Restaurants. After the bell, Costco’s results will be in focus.

In summary, the market is grappling with persistent inflation, rising bond yields, and geopolitical uncertainty ahead of a major summit, all while investors digest mixed signals from corporate America. -driven growth story offers a bright spot, but McDonald’s caution and Alibaba’s regulatory troubles highlight ongoing challenges. Watch the bond market and central bank commentary closely as they continue to set the tone.

Thanks for listening. Catch you next time on LazyListen.