Fed Officials Consider Rate Hike Against Inflation Risk

The news that the Fed may raise interest rates could suppress risk appetite and negatively impact growth stocks. GOOGL shares fell 3.88% in the last close, with its RSI approaching the oversold territory at 40.9. The MACD line is below the signal line and in negative territory, confirming weak short-term momentum. The price is trading below the 20- and 50-day moving averages, indicating a weak technical outlook. Therefore, downward pressure is expected to persist in the near term.

The news that the Fed is considering a rate hike could create pressure on the market. The RSI at 65 is approaching overbought territory, increasing the likelihood of a short-term correction. Although the MACD is positive, signs of weakening momentum may be interpreted as a bearish signal. While the price remaining above the 20- and 50-day moving averages supports the long-term trend, the news flow and overbought technical indicators could generate selling pressure in the near term.

The possibility of a Fed rate hike could suppress risk appetite, creating short-term selling pressure on the NDX. Technically, the RSI at 61.5 is approaching overbought territory, suggesting limited upside potential. Although the MACD remains positive, the uncertainty generated by the news may weaken the current upward momentum. In the short term, a correction or sideways movement is highly likely.

The news could support DXY by raising the possibility of a Fed rate hike. Technical indicators present a neutral picture: RSI is weak at 46, MACD is below zero but approaching the signal line. Price is trading below the 20- and 50-day moving averages, suggesting limited upside in the short term. A short-term rally may occur on the news, but technical resistance and lack of momentum could cap the move.