Fed Rate Cut Expectations on Wall Street Are Being Postponed

JPMorgan Chase (JPM) fell 0.79% in the last 24 hours, closing at 304.99. Despite the RSI at 53 indicating neutral territory, the MACD line remains below the signal line and in negative territory. The price managed to stay above the 20-day SMA (301.87) but is trading below the 50-day SMA (306.86). News headlines suggest that the Fed's delay in interest rate cuts is a negative signal for the banking sector. Therefore, a downward movement can be expected in the short term.

The postponement of Fed rate cut expectations may create a short-term negative impact on the market. Although the RSI on the SPX is in neutral territory at 58.6, the MACD has fallen below the signal line, indicating weakening momentum. While the price is trying to hold just above the 20-day SMA, it remains above the 50-day SMA, which could limit the downside. Considering both the news flow and technical indicators, downward pressure can be expected in the short term.

The postponement of Fed rate cut expectations is a development that typically reduces risk appetite and puts pressure on the NDX, which is heavily weighted toward growth stocks. Technically, the NDX closed just below its 20-day moving average (29,110), a level that can be monitored as short-term resistance. Although the RSI is in neutral territory at 57, the MACD remaining below its signal line indicates weakening momentum. Despite a 1.86% rise in the last 24 hours, the negative sentiment created by the news raises the possibility of the index testing the 29,000 support level. In the short term, upward movements are expected to remain limited, and selling pressure may increase.

The DXY's RSI stands at 75.28, firmly in overbought territory, increasing the likelihood of a short-term correction. While the headline suggests that the Fed's delay in rate cuts could support the dollar, technical indicators are flashing overbought signals. Although the MACD line remains above the signal line, the elevated RSI levels cast doubt on the sustainability of the rally. In the near term, a slight pullback in the DXY is expected due to overbought conditions and potential profit-taking. However, any decline is likely to be limited, as the postponement of rate cut expectations may provide medium-term support for the dollar.