Strong Employment Data Raises Expectations for December Rate Hike

Strong employment data has raised expectations of interest rate hikes, which could pressure growth stocks. GOOGL shares closed down 1.92% in the last session, with an RSI of 47.6 in neutral territory. The MACD line is below the signal line and in negative territory, indicating short-term weakness. While the price remains above the 20-day moving average, it is trading below the 50-day average. Given that rising rate expectations could negatively impact technology stocks, a short-term bearish trend for GOOGL is anticipated.

Strong employment data could increase expectations of interest rate hikes, potentially putting pressure on equities. Although the RSI on the SPX is approaching oversold territory at 35.9, the MACD being below its signal line and in negative territory supports a short-term bearish trend. The price trading below the 20- and 50-day moving averages further weakens the technical outlook. However, oversold conditions and a 1% decline over the past 24 hours keep the possibility of a short-term rebound alive.

Strong employment data has raised expectations of interest rate hikes, potentially putting pressure on the growth stock-heavy NDX. Technical indicators support this view: although the RSI at 31.5 is approaching oversold territory, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, indicating short-term weakness. The 2.1% decline over the past 24 hours suggests continued selling pressure. However, given oversold conditions, some buying on the dip may occur, so our bearish outlook is limited to moderate confidence.

Despite the DXY's RSI14 being in overbought territory at 75.95 and the price trading above its 20- and 50-day moving averages, strong employment data has raised rate hike expectations, which could lead to a short-term 'sell the news' scenario. Although the MACD line remains above the signal line, indicating a positive outlook, overbought conditions and the fact that high rate expectations are already priced in increase the likelihood of a correction in the DXY. The latest close at 99.82, with a daily gain of around 0.5%, may signal weakening momentum. Therefore, a short-term downward move is possible, though any decline is likely to be limited.