Fed's Waller: Rate Hikes May Be Needed if Core Inflation Remains High

Hawkish comments from a Fed member have strengthened expectations of an interest rate hike, potentially putting pressure on growth stocks. GOOGL stock is already displaying a technically weak outlook, with the RSI approaching oversold territory at 36 and the price trading below both its 20-day and 50-day moving averages. The MACD line is below the signal line and in negative territory, confirming short-term downward momentum. The 1.7% decline over the past 24 hours indicates continued selling pressure. However, the RSI nearing oversold levels also raises the possibility of a short-term bounce.

Fed Governor Waller's signal of a potential rate hike could increase tightening concerns in the market. On the SPX, the RSI is at 45, in the neutral-to-low region, the MACD is below the signal line, and the price remains below the 20-day moving average. This technical weakness, combined with hawkish Fed rhetoric, may create selling pressure in the short term. However, support near the 50-day moving average (7513) and the possibility of limited downside keep confidence at a moderate level.

A Fed official's signal of a potential rate hike serves as a short-term negative catalyst, particularly for the tech-heavy NDX. With the RSI at 38 and the price trading below both the 20-day and 50-day moving averages, the current downtrend is confirmed. The MACD below the signal line and in negative territory indicates weak momentum. While the news could amplify selling pressure in line with the technical outlook, the RSI approaching oversold levels also raises the possibility of a short-term bounce.

The news that a hawkish member of the Federal Reserve has raised the possibility of a rate hike could provide short-term support for the DXY. Technical indicators also support this view: although the RSI at 67 is approaching overbought territory, it remains in an upward trend, with the MACD above the signal line and in positive territory. The price is trading above the 20- and 50-day moving averages, indicating a continuation of the uptrend. However, the elevated RSI level also brings a risk of a short-term correction, so the upside expectation is tempered with cautious optimism.