Strong August Nonfarm Payroll Data Lifts Bond Yields

Strong non-farm payroll data could push bond yields higher, putting pressure on growth stocks. GOOGL's RSI is in neutral territory (46) with a negative MACD, indicating weak short-term momentum. The price has closed below the 20- and 50-day moving averages, suggesting nearby resistance levels. Higher yields may negatively impact valuations in the technology sector, though the effect could be limited as the data already confirms a robust economy. A slight downward correction can be expected in the short term.

Strong non-farm payroll data confirmed the resilience of the US economy, increasing the likelihood that the Federal Reserve will delay interest rate cuts and pushing bond yields higher. This typically supports the dollar index (DXY). Technically, DXY is trading above its 20-day moving average with an RSI of 54, indicating upward momentum. The MACD line is above the signal line and approaching positive territory, suggesting short-term bullish momentum. However, the price is just below the 50-day average, which should be monitored as a resistance level. In the short term, an upward move is expected on the back of the news, but I do not foresee an excessive rally.

Strong non-farm payroll data has increased the likelihood that the Federal Reserve will delay or pause interest rate cuts, pushing bond yields higher. This could weigh on equity valuations and trigger profit-taking in the S&P 500 (SPX) in the near term. Technically, the RSI sits at 54 in neutral territory, the MACD remains below its signal line, and price is just above the SMA20 and SMA50, indicating weakening momentum. While the uptrend persists, the news flow and technical outlook support the possibility of a pullback.