Fed Rate Cut Delayed to Late 2026 Amid War-Driven Inflation Risks

The Federal Reserve's delay in cutting interest rates could reduce overall market risk appetite, putting pressure on growth stocks. Although GOOGL shares showed a slight decline in the last close, the RSI at 59 remains in neutral territory, and the MACD is generating a positive signal. In the short term, this news may limit upward momentum and trigger profit-taking. However, since technical indicators are not yet in oversold territory, the decline is expected to be limited.

The Fed's postponement of a rate cut could reduce short-term risk appetite by delaying the easing cycle anticipated by the market. On the S&P 500 (SPX), the RSI at 61.6 is approaching overbought territory, and the MACD has started to fall below its signal line, indicating a loss of momentum. Although the index closed above its 20-day SMA (7106), the combination of uncertainty from the news and technical weakening suggests a bearish reaction may be expected. However, the decline is not expected to be severe, as the market may be partially prepared for such delays.

The Federal Reserve's postponement of interest rate cuts until the end of 2026 could disappoint markets and reduce risk appetite in the short term. With the RSI on the NDX approaching 69, indicating overbought territory, profit-taking may occur in response to this news. Although the MACD remains bullish, momentum is likely to weaken. While technical indicators point to a strong uptrend, such news increases the risk of a short-term correction. Therefore, the index is expected to experience some pullback.

The news indicates that the Fed's delay in cutting interest rates will support the DXY. Technical indicators also back this view: the RSI is trending upward at 60, the MACD is above zero, and the price is above both the 20-day and 50-day moving averages. In the short term, the DXY is likely to move higher, but it should be noted that the upside may be limited as it is not yet approaching overbought territory.