AI Spending, Profit Expectations, and Fed Outlook to Drive US Stocks

GOOGL shares have risen 5.1% in the last 24 hours, demonstrating strong momentum. The RSI is at 65, not yet in overbought territory, while the MACD is above its signal line, presenting a positive outlook. The price is trading above the 20- and 50-day moving averages, supporting a short-term uptrend. News headlines suggest macro factors such as AI spending and the Fed outlook could positively impact the stock. However, given the recent rally, there is a risk of a short-term correction, so I refrain from giving high confidence.

The S&P 500 (SPX) is trading above its 20- and 50-day moving averages, with the Relative Strength Index (RSI) at 69.7, approaching overbought territory. The MACD is above its signal line, indicating positive momentum that supports a short-term bullish trend. News headlines highlight positive themes such as AI spending and the Fed's outlook, but the elevated RSI increases the risk of a near-term correction. Therefore, while the upward trend may continue, caution is warranted.

The NDX is nearing overbought territory with an RSI of 71, which could limit upward movement in the short term. Although the MACD still signals a strong bullish trend, profit-taking may occur following the sharp 3.16% rise over the past 24 hours. While news headlines point to fundamental supportive factors such as AI spending and Fed expectations, the overbought signal in technical indicators increases the likelihood of a sideways movement in the near term. Therefore, rather than determining a clear direction, the market can be expected to stabilize around current levels.