That sound you hear is the whimper of lowered expectations.

Driving the news: The Fed yesterday poured cold water on the prospect of March rate cuts, saying it needs "greater confidence" in inflation declines.

• Fed chair Jay Powell did signal that rate cuts will likely occur in 2024, but that he and his colleagues want to wait.
• The S&P 500 reacted with its worst day in over four months, shedding 1.6%.

Behind the scenes: Many dealmakers had been expecting imminent rate cuts, which then would lubricate everything from leveraged lending to unicorn valuations to limited partner commitments.

• No one said out loud that they were banking on a ZIRP return in 2024, if ever, but you could sense lottery dreams lurking behind the cautious optimism.
• Now everyone's left with the new normal, minus the transitory shimmer. Fundamentals reign supreme, at least for several more months.

The big picture: The U.S. economy continues to be very strong, particularly in terms of GDP growth and labor, which Powell yesterday took pains to emphasize.

• It's a reality that more and more Americans are beginning to believe in, based on recent polling, despite inflation continuing to outpace Fed targets.

The bottom line: The ball is now in the hands of dealmakers, who had been ramping up activity so far this year. Their choices are:

1. Take that ball and go home.
2. Play out the first quarter with the expectation of changed conditions later this year.
3. Remember how you told everyone that several years of returns were based on easy money, which was never sustainable, and that you're actually kind of glad that sanity prevailed because it will really separate the savvy investors from the sheep. And then go do the work.

Alibaba (NYSE: BABA) is weighing a sale process for InTime, the Chinese department store chain it took private in 2017, according to Bloomberg.

Why it's the BFD: Alibaba appears to be backing away from its omnichannel retail ambitions, as the tech giant continues to stumble over broader reorganization plans.

The bottom line: Chinese consumer confidence is much lower today than in 2017, when Alibaba valued InTime at around $4 billion.

• DataSnipper, a Dutch automation platform for accountants and auditors, raised $100m in Series B funding led by Index Ventures at a $1b valuation, per Fortune. https://axios.link/48WnVI2

🌎 Watershed, an SF-based enterprise sustainability platform, raised $100m in Series C funding at a $1.8b valuation. Greenoaks led, and was joined by insiders Kleiner Perkins, Sequoia Capital, Elad Gil, Emerson Collective, and Galvanize Climate Solutions. https://axios.link/48WNTeq

• Metronome, a SF-based provider of usage-based billing solutions for software companies, raised $43m in Series B funding. NEA led, and was joined by insiders a16z and General Catalyst. https://axios.link/3OrSoFv

• Oasis Security, an Israeli provider of non-human identity management solutions, raised $40m. Sequoia Capital led, and was joined by Accel, Cyberstarts, and Maple Capital. www.oasis.security

🚑 ArteraAI, a Los Altos, Calif.-based developer of AI tests to personalize therapy for cancer patients, raised $20m from Prosperity7 Ventures, EDBI, Walden Catalyst Ventures, Wilson Sonsini Goodrich & Rosati, and Trium Ventures. https://axios.link/3UoH6FP

• Planet A Foods, a Munich-based developer of a more sustainable cocoa alternative, raised $15.4m in Series A funding. World Fund led, and was joined by Omnes Capital, Cherry Ventures, Mudcake, Nucleus Capital, Triple Point Capital, and Feast Ventures. https://axios.link/42r8xAP

• BlueLayer, a Berlin-based software provider for carbon project developers, says it's raised $10m led by Point Nine. https://axios.link/3ugh7pu

Foodsmart, an SF-based telenutrition startup, raised $10m in Series C extension funding from Advocate Health, Memorial Hermann Health System, Intermountain Health, the American College of Cardiology, and Glen Tullman. https://axios.link/3u6jF9L

• Semron, a German developer of energy-efficient computer chips, raised €7.3m in seed funding. Join Capital led, and was joined by SquareOne and OTB Ventures. https://axios.link/49cZu8S

• Xampla, a U.K.-based plant-based materials developer, raised $7m from Amadeus Capital Partners, Horizon Ventures, Cambridge Angels, Cambridge Enterprise, Martlet Capital, and CIECH Ventures. https://axios.link/48SyPON

🚑 CARPL, an SF-based radiology marketplace, raised $6m led by Stellaris Venture Partners. https://axios.link/49jbBkG

🚑 Lumata Health, an Edmond, Okla.-based virtual ophthalmology care platform, raised $5.5 million in Series A funding led by Cortado Ventures, per Axios Pro. https://axios.link/3uqSd6x

• Leal, a Colombian cashback and rewards startup, raised $5m. Leap Global Partners and Rakuten Capital co-led, and were joined by Morro Ventures and Salkantay Ventures. https://axios.link/48X643C

🚑 Harbor, a D2C baby monitor and remote nursing platform, raised $3.7m in seed funding, per Axios Pro. Trust Ventures led, and was joined by Morrison Seger and Capital Factory. https://axios.link/3vXr9wn

• Twin Labs, a Paris-based repetitive task automation startup raised $3m in pre-seed funding from Betaworks and Motier Ventures. https://axios.link/47XJo1N

• Indemn, a New York-based provider of insurtech product configuration and underwriting solutions, raised $1.9m in pre-seed funding. Markd led, and was joined by Afterwork Ventures and Everywhere Ventures. www.indemn.ai

⚡ Energy Source, a Brazilian lithium battery repair and recycling startup, raised $1.2m from InMotion Ventures, the VC arm of Jaguar Land Rover. www.energysource.com.br

• Meteomatics, a Swiss weather intelligence startup, raised capital from Lockheed Martin's VC arm. https://axios.link/491BuWM

• Teamshares, a New York-based EOP enabler for small businesses, plans to raise at least $100m later this year, per Axios Pro. Existing backers include Khosla Ventures and Spark Capital. https://axios.link/49jLVES

• Arcane Capital Partners acquired Petroflex North America, a Gainesville, Texas-based maker of high-density polyethylene conduit and accessories, from Transition Capital Partners. www.petroflexna.com

• Artinia Group invested in Canvas, a Huntsville, Ala.-based provider of engineering and lifecycle management services to U.S. defense agencies. www.canvas-inc.com

• Bansk Group acquired No Man's Land Foods, a meat snacks brand. www.nmlbeefjerky.com

• Charlesbank Capital Partners committed $250m to Rise Growth Partners, an Austin, Texas-based "financial partner" for registered investment advisors. https://axios.link/48VjvAV

🚑 Instinct Science, a Doylestown, Pa.-based veterinary hospital management firm backed by Mainsail Partners, acquired VetMedux, a Tulsa, Okla.-based education company for veterinarians. www.instinct.vet

• Motis Brands, a Germantown, Wis.-based portfolio company of Prospect Hill Growth Partners, acquired Titan Ramps, a provider of loading ramps and carriers. www.motisbrands.com

• Netwrix, a Frisco, Texas-based portfolio company of Centerbridge Partners, Updata Partners, and TA Associates, acquired CoSoSys, a network endpoint security provider, from Turn/River Capital. www.endpointprotector.com

⚡ Silver Hill Energy Partners agreed to buy the Bakken shale assets in North Dakota of Liberty Resources II. https://axios.link/498dn8w

• Thompson Street Capital Partners and Cequel III acquired a control stake in DDC Cabinet Technology, a San Diego-based maker of data center cabinet and cooling solutions. www.ddc-cabtech.com

• Viridium, a German life insurer owned by Cinven, won't proceed with a planned purchase of a $20b life insurance book from Zurich Insurance (Swiss: ZURN), due to regulatory concerns. https://axios.link/3HINdNM

• Amer Sports, the Finnish maker of Wilson tennis rackets and other sports gear, raised $1.3b in its IPO. It priced 100m at $13 (below $16-$18 range), with insiders agreeing to buy more shares than the $510m in additional stock they'd already agreed to purchase. Amer is controlled by China's Anta Sports Products. https://axios.link/3vQ5V3d

• UST, an Aliso Viejo, Calif.-based digital transformation firm backed by Carlyle and Temasek, is weighing a U.S. IPO that could seek to raise at least $500m, per Bloomberg. https://axios.link/3w1JsQX

🚑 Alps Global, a Malaysian developer of personalized medicines, agreed to go public at an implied $1.6b valuation via Globalink Investment (Nasdaq: GLLI), a SPAC that previously had agreed to acquire Tomorrow Crypto. https://axios.link/49bo9LD

• H.I.G. Capital sold Cardinal Logistics, a Concord, N.C.-based provider of transportation and logistics services, to Ryder System (NYSE: R). www.cardlog.com

• Canal Plus, a French media group controlled by Vivendi, offered to buy the 68.3% stake it doesn't already own in South African media company MultiChoice for around $1.7b. https://axios.link/3SFQcg4

🚑 Cardinal Health (NYSE: CAH) acquired Specialty Networks, a Cleveland-based multi-specialty group purchasing and practice enhancement organization, for $1.2b. https://axios.link/49iUa3F

• Walt Disney Co. (NYSE: DIS) agreed to sell a 60% stake in its India unit to Viacom18, backed by Reliance Industries and Bodhi Tree, at a $3.9b enterprise value, per the WSJ. https://axios.link/42oQsmR

🌎 Generate Capital raised $1.5b to invest in low-carbon infrastructure. https://axios.link/4bn1qO7

• KKR raised $6.4b for its second Asia-Pacific infrastructure fund. https://axios.link/3SkG7nx

• Speedinvest, a European VC firm, raised €350m for its fourth fund. https://axios.link/3SCBfvo

🌎 Templewater, an Asia-focused alt investment firm focused on clean energy tech, is raising $400m-$500m for its second private equity fund and $300m for a decarbonization fund, per Bloomberg. https://axios.link/48VV0DX

• Uncorrelated Ventures, a crypto-focused VC firm, raised $315m for its latest fund. https://axios.link/42g0bMx

• Vives IUF, a Belgian early-stage fund that connects academic research projects with investors, raised €38m led by the European Investment Fund. https://axios.link/42kCvq5

• Andrew Brackin (co-founder, ex-COO of Vial) and Siri Srinivas (Draper Associates) joined Gradient Ventures as partners. www.gradient.com

• Arsenal Capital Partners named Joelle Marquis as firm president. www.arsenalcapital.com

• Hamish Buckland joined Marlborough Partners as chairman. He served as chair of CVC Credit from 2017-2021, and before that was with Triton and JPMorgan. www.marlboroughpartners.com

• Sean Cunningham is retiring from his role as managing director with VC firm Forgepoint Capital, after more than eight years. He previously spent 21 years with Intel Capital. https://axios.link/3UoAcAu

• Cinven announced that Bruno Schick, Jorge Quemada, and Supraj Rajagopalan will become co-managing partners, with Stuart McAlpine transitioning to firm chairman. www.cinven.com

• David Gibson joined Comvest Partners as a managing director focused on direct lending. He previously was with Goldman Sachs. www.comvest.com

⚡ Kayne Energy Infrastructure named Eric Javidi (ex-Archaea Energy) and Harrison Little (Decade Renewable Partners) as co-heads. www.kayneanderson.com

• Kamran Zaki, former COO at Adyen, joined Iconiq Growth as a partner. https://axios.link/3uiQikz

Alibaba shares have fallen nearly 27% since the company announced its corporate overhaul, parts of which it's already pared back.