US Inflation Holds Steady at 3.4% in August

Inflation remaining steady at 3.4% appears to have been priced in as a result close to market expectations; therefore, the news alone may have a limited effect in creating a direction. However, SPX's 1.58% drop at the last close and RSI14 approaching oversold territory at 29.8 increase the likelihood of a short-term rebound. MACD being below its signal line and in negative territory confirms weak momentum. The price trading below SMA20 and SMA50 weighs on the technical outlook. In this picture, although the news remains neutral, oversold conditions could trigger a limited recovery attempt; nevertheless, additional confirmation is needed for a trend reversal.

Inflation remaining stable at 3.4% can be considered close to market expectations; therefore, the news alone does not produce a strong directional signal. The NDX has declined 1.27% in the last 24 hours to 29,108, and RSI14 at 32 is approaching oversold territory. MACD is negative and below the signal line, indicating weak short-term momentum. The price is trading below SMA20 and SMA50, suggesting a cautious technical outlook. Since the stable inflation data has not completely undermined rate cut expectations, it may not create severe selling pressure, but additional catalysts may be needed for a recovery.

US inflation remaining stable at 3.4%, close to expectations, may provide slight support for the Fed to delay interest rate cuts. The DXY is currently at 99.22, above its 20 and 50-day moving averages, with an RSI of 69.3, nearing overbought territory. The MACD is in positive territory and just above the signal line, indicating weak but upward short-term momentum. However, the high RSI suggests limited upside potential or a risk of short-term correction. Overall, the news may have a slightly positive effect on the dollar index, but due to overbought conditions, the upside may be limited.