Wall Street Futures Decline as AI Rally Cools, Inflation Data Awaited

GOOGL shares fell 2.98% in the last close, with the RSI dropping to 34, approaching oversold territory. The MACD remains below the signal line and in negative territory, while the price trades below both the 20-day and 50-day moving averages. News headlines indicate a slowdown in the AI rally and anticipation of inflation data, reflecting weak overall market sentiment. In the short term, the likelihood of continued downward pressure is high due to weak technical indicators and negative news flow. However, while the RSI approaching oversold levels could signal a potential buying opportunity for a rebound, this alone is insufficient to confirm a trend reversal.

The news headline indicates a slowdown in the AI rally and anticipation of inflation data, creating a short-term negative sentiment. Technical indicators show the RSI at 48, in neutral territory, but the MACD remains below the signal line, and the price is trading below the 20-day SMA (7387). This suggests weakening momentum and potential for increased selling pressure. Cautious positioning is expected ahead of inflation data, with a high probability of continued downward movement in the short term.

The headline indicates that the artificial intelligence rally is slowing and inflation data is anticipated, creating a negative short-term sentiment. NDX closed below its 20-day moving average (29,053), signaling technical weakness. Although the RSI is neutral at 52.5, the MACD line being below the signal line suggests diminishing momentum. Despite a 1.28% rise in the last 24 hours, the decline in futures and prevailing uncertainty point to potential selling pressure in the near term. Therefore, NDX is likely to exhibit a slight downward trend over the next 1-3 days.

Although NVDA shares have gained over 5% in the last 24 hours, a decline in Wall Street futures and reports of a slowing AI rally warrant short-term caution. Among technical indicators, the RSI is at 61, neither overbought nor oversold, while the MACD remains slightly below the signal line, suggesting weakening momentum. The price staying above the 20-day simple moving average (216.84) is positive, and holding above the 50-day average (207.54) maintains medium-term support. With inflation data expected, the market is likely to focus on these figures for direction. Therefore, it is difficult to determine a clear short-term trend, and a sideways movement can be anticipated.