Kevin Warsh Sworn in as Fed Chairman, Trump Expects Interest Rate Cuts

The news highlights the potential appointment of Kevin Warsh, perceived as market-friendly, as Fed chair and Trump's expectation of interest rate cuts. This could create a short-term tailwind for the tech-heavy NDX index. Technically, the index is trading above its 20- and 50-day moving averages, with an RSI of 57 supporting the upward trend. The MACD line being above the signal line also confirms positive short-term momentum. However, it should be noted that rate cut expectations may already be priced in, and the market could have a limited reaction to this news.

Although the news of the new Fed chair has increased expectations of an interest rate cut, the stock price fell 4.9% in the last close, with the RSI approaching oversold territory at 37.7. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below both the 20-day and 50-day moving averages, technically confirming a bearish trend. However, the rate cut expectations and oversold conditions could set the stage for a potential recovery. Therefore, the short-term direction is uncertain, with risks of both further declines and a rebound.

The news suggests that the new Fed Chair may align with Trump's expectations for interest rate cuts, creating anticipation of monetary easing that could support gold prices. Technically, the RSI is near oversold territory at 43, and the MACD is about to cross above its signal line, indicating a potential short-term recovery. However, with the price trading below both the 20-day and 50-day moving averages, the upside may remain limited.