Fed Projections Shift: Rate Cut Expectations Diminish

The Federal Reserve's reduction in rate cut expectations could negatively impact risk appetite in the markets. The S&P 500 (SPX) closed down 0.77% at 7,478, with the RSI at 47.8, indicating a neutral but bearish bias. The MACD line is below the signal line and in negative territory, suggesting weakening short-term momentum. The price is trading below the 20-day moving average (7,489) but remains above the 50-day moving average (7,458), which may limit downside. A pullback toward the 7,450 support level is highly likely in the coming days due to the news impact.

The Fed's reduction in rate cut expectations could create short-term negative pressure on the tech-heavy NDX by dampening overall risk appetite. Technically, while the RSI at 54.6 remains in neutral territory, the MACD line staying below the signal line indicates weakening momentum. Although the price manages to stay above the 20- and 50-day moving averages, this shift in news flow may increase selling pressure in the near term. Therefore, NDX is likely to show a slight downward trend over the next 1-3 days.

The news that the Fed is reducing expectations for interest rate cuts creates a positive catalyst for the DXY. Technical indicators also support this view: the RSI is near 60 and trending upward, while the MACD is close to the signal line but in positive territory. The price is trading above the 20- and 50-day moving averages, indicating short-term upward momentum. However, the MACD remaining below the signal line and the RSI not approaching overbought territory suggest that the upside may be limited. Overall, while the news and technical data are aligned, a moderate rise can be expected to avoid being overly aggressive.