US PCE Inflation Exceeds 4% in May, Consumer Spending Remains Strong

PCE inflation exceeding 4% could weaken the Fed's rate cut expectations and create pressure on the market. Although the RSI on the SPX is approaching oversold territory at 39, the MACD continues to give a sell signal, and the price remains below both the 20-day and 50-day moving averages. Strong consumer spending may increase inflation concerns, further reducing hopes for rate cuts. Selling pressure is likely to persist in the short term, but the pace of the decline may be limited due to oversold conditions.

NDX fell 3.8% in the last 24 hours to 29,229, trading below both its 20-day SMA (29,658) and 50-day SMA (30,005). While the RSI at 37.4 nears oversold territory, the MACD line remains below the signal line and in negative territory, confirming weak momentum. The reported PCE inflation exceeding 4% and strong consumer spending could weaken Fed rate cut expectations and pressure tech stocks. Short-term selling risk remains high, though oversold conditions may trigger some buying interest.

PCE inflation exceeding 4% could weaken expectations for Fed rate cuts and create short-term pressure on the DXY. However, strong consumer spending may support the dollar by demonstrating economic resilience. Technically, the RSI is in neutral territory at 47.8, while the MACD remains below the signal line. The price is trading below the SMA20 (101.58) but is close to the SMA50 (101.52). Therefore, a slight downward movement can be expected in the short term, but the decline is likely to be limited.