Fed Report: Tariffs, Iran War, and AI Investments Accelerate Inflation

The news headline points to tariffs, geopolitical risks, and AI investments as factors driving inflation. This could weaken expectations for interest rate cuts and put pressure on technology stocks. GOOGL shares have fallen 3.4% in the last 24 hours, with the RSI at 46.8, indicating a neutral but weakening zone. The MACD line is below the signal line and in negative territory, suggesting weak short-term momentum. The price is trading just below the 20-day moving average (357.12) and remains under the 50-day moving average (360.44), confirming a bearish trend. In the near term, the combination of macroeconomic concerns and technical weakness poses a risk of further pullback for the stock.

The news headline highlights tariffs, geopolitical risks, and AI investments as factors driving inflation. This raises concerns that the Fed may delay rate cuts or adopt a more hawkish stance. Technically, while the RSI at 67.5 is approaching overbought territory, the MACD remains positive and the price is above moving averages. In the short term, these mixed signals suggest that upward momentum may be limited, but a sharp decline is also unlikely. Therefore, no clear directional expectation emerges.

NDX closed at 29819, up 1.82%, with RSI at 61.5 in neutral territory. MACD is positive and above the signal line, supporting short-term momentum. However, the Fed report notes that tariffs, the Iran war, and AI investments are increasing inflation, which could weaken rate cut expectations. Technically, trading above the 20- and 50-day moving averages is positive, but inflation concerns may limit upside. Therefore, short-term direction remains uncertain.

The DXY is trading above its 20- and 50-day moving averages, with the RSI at 56.7 maintaining a bullish bias in neutral territory. The MACD line is above the signal line and approaching positive territory, indicating short-term upward momentum. The news headline points to rising inflationary pressures, which typically supports the DXY as the Fed is expected to pursue tighter monetary policy. However, uncertainty over whether inflation is structural or transitory, along with the possibility that the market has already priced in this news, limits the upside expectation. In the short term, the 101.00 level can be monitored as resistance.