Fed Officials Consider Rate Hike Possibility Against Inflation Risks

GOOGL stock is approaching oversold territory with an RSI of 33.6, but the MACD line remains below the signal line and in negative territory, indicating short-term weakness. The price is trading below both the 20-day (388.34) and 50-day (387.47) moving averages, confirming a downtrend. The news that the Fed is considering a rate hike is a macroeconomic factor that could pressure growth stocks. The 0.96% decline in the last 24 hours shows continued selling pressure. The short-term downtrend is likely to persist, but sharp declines are not expected due to the oversold territory.

The news reports that the Federal Reserve is evaluating the likelihood of a rate hike, a scenario that typically exerts selling pressure in the markets. Technically, the asset is in an overbought zone with an RSI of 73, which heightens the probability of a short‑term pullback. The MACD is poised to cross below its signal line, potentially signaling a weakening momentum. However, since the price remains above both the 20‑ and 50‑day moving averages, a decline is expected to be limited. In the near term, a horizontal‑negative trend is projected.

The Nasdaq 100 (NDX) has moved into an overbought zone with an RSI of 71 and has dipped below the MACD signal line, signaling a potential short‑term pullback. The Federal Reserve’s assessment of the likelihood of a rate hike could reduce risk appetite, putting pressure on technology stocks. Despite a 1.4% rise over the past 24 hours, the weakening technical indicators and the uncertainty generated by the news support a short‑term downward move. However, the index remains above both the 20‑day and 50‑day simple moving averages, suggesting that any decline may be limited.

The possibility of a rate hike by Fed officials could support the USD, potentially leading to a short‑term rise in the DXY. However, with the RSI at 39 and a negative MACD, the trend remains unclear. A modest rebound may be expected within 1–3 days, though volatility could stay high.