Fed Official Musalem Warns Against Expectation That AI Will Reduce Inflation

A Federal Reserve official's warning that AI could reduce inflation may strengthen expectations of a slowdown in interest rate hikes. This development could have a positive impact on the technology sector. GOOGL, with an RSI of 52, is at a moderate level, and the MACD is above the signal line, supporting the upward momentum in the short term. The SMA20 and SMA50 levels are close, but the price being above these moving averages indicates a short-term upward trend. A slight increase is expected within 1-3 days, but volatility may continue.

DXY is trading below its 20- and 50-day moving averages, and while the RSI at 36 approaches oversold territory, momentum remains weak. The MACD line is below the signal line and in negative territory, confirming a short-term bearish trend. A news headline warning that a Fed official expects AI to lower inflation could reduce safe-haven demand, putting additional pressure on DXY. However, the low RSI level suggests that downside movement may be limited. The short-term downtrend could continue, but a potential rebound should not be ruled out if the index enters oversold territory.

The NDX is nearing overbought territory with an RSI of 70.5, increasing the likelihood of a short-term correction or consolidation. The MACD remains positive but is hovering near the signal line, suggesting potential momentum weakening. News headlines indicate the Fed is cautious about AI-driven inflation decline expectations, which could limit optimism in tech stocks. Although the price is trending positively above the SMA20 and SMA50, the overbought signal and Fed warning constrain upward movement in the near term. Therefore, it is difficult to determine a clear direction, and the market may be expected to stabilize at current levels.

The news may create mild market pressure as a Fed official warns against optimism that AI will lower inflation. NVDA's technical indicators are sending mixed signals: RSI at 48.9 (neutral), MACD below zero but above its signal line, and price above SMA20 but below SMA50. This makes it difficult to determine a clear short-term direction. The 0.8% decline over the past 24 hours and general uncertainty may keep investors cautious.