US May PCE Inflation at 4.1% Keeps Fed Rate Hike on the Table

GOOGL shares are trading weakly, with a daily decline of over 2%. Although the RSI at 34 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 technical weakness. The PCE inflation reading of 4.1%, above expectations, has heightened concerns that the Fed will continue raising interest rates, potentially putting pressure on growth stocks. The likelihood of continued selling pressure in the short term is high.

The PCE inflation rate came in at 4.1%, above expectations, raising concerns that the Fed will continue its rate hikes. On the S&P 500 (SPX), the RSI is at 42.9, indicating a weak zone, and the MACD is trading negatively below the signal line. The price is trading below both the 20-day and 50-day moving averages. Selling pressure is likely to persist in the short term, but since the market has not yet entered oversold territory, the pace of the decline may remain limited.

NDX dropped 3.48% in the last 24 hours to 29,385 points, closing below both its 20-day (29,515) and 50-day (29,953) moving averages. The RSI at 43.3 has moved below the neutral zone, indicating weakening short-term momentum. The MACD line remains below the signal line and in negative territory, suggesting the downtrend may continue. With PCE inflation coming in at 4.1%, expectations of further Fed rate hikes have strengthened, potentially putting pressure on technology stocks. In the short term, a test of the 29,000 support level is highly likely, but since the market has not entered oversold territory, the pace of decline may slow.

The DXY is trading at 101.36, down 0.2% over the past 24 hours. The RSI at 38.4 is approaching oversold territory, while the MACD remains below the signal line in negative territory. A close below the 20- and 50-day moving averages (101.55) confirms short-term weakness. The PCE inflation rate came in at 4.1%, above expectations, reinforcing the perception that the Fed will continue raising interest rates, which could support the dollar. However, technical weakness and closes below 101.30 suggest the downtrend may persist.