Fed's September Decision Tied to Inflation: Waller Open to Rate Hike

The news that a Fed official is open to a rate hike could dampen risk appetite and negatively impact growth stocks. GOOGL's RSI at 58 is not yet in overbought territory, but the MACD being above its signal line supports short-term momentum. The price is trading above the SMA20 and SMA50, indicating a solid overall trend. Nevertheless, expectations of a rate hike could trigger profit-taking in high-valuation tech stocks. Therefore, the likelihood of a limited pullback in the short term appears moderate.

The U.S. Dollar Index (DXY) is in oversold territory with an RSI of 24.5, down 0.64% over the past 24 hours. The MACD is in negative territory and below the signal line, confirming weak short-term momentum. The price is trading below both the 20-day and 50-day simple moving averages (SMA20 and SMA50), indicating a downward trend overall. Waller's openness to interest rate hikes may heighten inflation concerns, potentially pressuring the dollar in the short term. However, given the oversold conditions, some technical rebound is possible, so I anticipate a limited pullback rather than a strong decline.

Fed Governor Waller's indication that he is open to further rate hikes could be perceived as a hawkish stance, potentially dampening risk appetite in the short term. The S&P 500's RSI at 69 is approaching overbought territory, suggesting limited upside movement. Although the price remains above the SMA20 and SMA50, the news flow and technical saturation increase the likelihood of a short-term pullback. The MACD is positive and above the signal line, but at a level where momentum could show signs of weakening. Therefore, a downward correction is expected over a 1-3 day horizon, though it is still too early to call for a strong trend reversal.

The news that Fed Governor Waller is open to a rate hike could have a negative impact on the market. This may reduce risk appetite and create selling pressure on growth-oriented indices such as the NDX. Although technical indicators, with the RSI at 65 and the MACD above its signal line, support a short-term upward trend, the news flow could break this momentum. Trading above the SMA20 is a positive signal, but with the expectation of a rate hike, there is a possibility that the index could pull back to the 29200-29300 support zone. Therefore, a downward movement can be expected in the short term.