Fed's Williams: Inflation Will Slow, Rate Hikes Possible if Needed

The news headline sends a mixed signal as a Fed official stated that inflation will slow but that interest rates could still be raised if necessary. This may create concerns about a rate hike in the market, although the statement that inflation will slow could be perceived positively. On the technical indicators, the RSI at 61 is close to overbought territory, the MACD is positive, and price action is above the SMA, supporting a short-term upward trend. However, the uncertainty surrounding the news and the potential risk of a rate hike could limit upward movement. Therefore, a sideways trend is expected in the short term.

The news headline includes statements from a Fed official indicating that inflation will slow, but interest rates could be raised if necessary. This may be perceived by the market as a cautious hawkish stance, but the emphasis on slowing inflation could support risk appetite. In technical indicators, NDX is above its 20-day and 50-day moving averages, with RSI at 57 in neutral territory, and MACD positive and above its signal line. There has been a strong 1.8% rise in the last 24 hours, indicating positive short-term momentum. However, since the possibility of a rate hike could create uncertainty, the upside is expected to remain limited.