Fed Signals Conditional Rate Hike, AI Pricing Risk Comes to the Fore

The Fed's rate hike signals and AI pricing risks could exert pressure on the market. Although the RSI at 30.7 is approaching oversold territory, the MACD remains negative and below the signal line, indicating weak momentum. The price is trading below both the SMA20 and SMA50, suggesting a short-term downtrend. The news flow may dampen risk appetite, but the pace of decline could be limited due to oversold conditions. Therefore, the likelihood of continued downward movement in the short term is high.

The news headline highlights the Fed's hawkish signal on interest rate hikes and the risk of AI pricing, which could put pressure on the technology-heavy NDX index. Technical indicators show RSI at 26.9, indicating oversold conditions, but MACD is negative and the price is below both the SMA20 and SMA50, suggesting that short-term downward momentum may continue. The 2.5% decline in the last 24 hours indicates strong selling pressure. However, due to oversold conditions and the possibility of a short-term bounce, I do not maintain a high confidence level. If the market continues to price in rate hike expectations, we could see further downside movement in the NDX.

The headline highlights the Fed's rate hike signal and AI pricing risk, which could pressure high-beta and growth stocks. Technical indicators support this outlook: RSI at 34 is near oversold territory but shows no reversal signal yet. MACD is in negative territory and below the signal line, indicating weak short-term momentum. The price is trading below SMA20 and SMA50, with a 3.28% decline in the last 24 hours. Therefore, the likelihood of continued downward movement in the short term is high, but given oversold conditions, a limited pullback rather than a sharp drop may be expected.