US Inflation Exceeds Expectations, Treasury Yields Rise

Inflation exceeding expectations could increase concerns that the Fed may delay interest rate cuts, putting pressure on equities. Rising Treasury yields may negatively impact growth stock valuations. While the SPX's RSI is in neutral territory at 58.6, the MACD remains below the signal line, indicating short-term weakness. The price is just above the 20-day SMA; losing this level could accelerate the decline. However, since the market is not yet in oversold territory, the downside may remain limited.

GOOGL shares may come under pressure as rising Treasury yields, driven by U.S. inflation exceeding expectations, weigh on the stock. Technical indicators also point to weakness: the RSI has fallen to 42, below the neutral zone, while the MACD is below its signal line and in negative territory. The short-term outlook is bearish as the price closed below both the 20-day and 50-day moving averages. However, since the stock has not yet entered oversold territory, the downside may be limited.

US inflation exceeding expectations reinforces the expectation that the Fed may delay rate cuts or pursue tighter policy. This could support the dollar, creating upward pressure on the DXY. Technically, the RSI at 61 is above the neutral zone, and the price is trading above both the 20-day and 50-day moving averages. Although the MACD line is below the signal line, it remains in positive territory, suggesting that upside potential may persist in the short term. However, as the market is not approaching overbought levels, there is a risk of limited upside.

Inflation exceeding expectations may increase concerns that the Fed could delay interest rate cuts, thereby suppressing risk appetite. The rise in Treasury yields could create short-term selling pressure, particularly on the NDX, which is heavily weighted towards growth stocks. Technically, although the RSI is in neutral territory at 57, the price closing below the 20-day moving average (29110) indicates weakness. The MACD remaining below the signal line also suggests slowing momentum. Therefore, the short-term bias leans towards a downtrend.