US Consumer Prices Accelerated in August, Bringing Fed Closer to Rate Hike

The acceleration of the US August CPI data means the Fed is approaching a rate hike, which is a negative signal for growth stocks. Although GOOGL's last close was $338.42, up 0.10% in 24 hours, the RSI is at 55.9, in neutral territory, and there is positive momentum above the MACD signal line. However, rising rate expectations could create valuation pressure on tech stocks and lead to short-term selling. The SMA20 and SMA50 levels are $334.11 and $336.92, respectively, and the price is holding above these averages; a break below these supports could accelerate the decline. Nevertheless, the impact of the news may be limited, as the market may have largely priced in the Fed's rate hike.

The acceleration of US consumer inflation in August means the Fed is approaching a rate hike, which is a negative signal for stock markets. The SPX closed down 0.49% at 7655.5 in the last 24 hours and is trading below its 50-day moving average (7673). The RSI is at 51, in neutral territory, but the MACD is negative and below its signal line, indicating that downward momentum may continue. If rate hike expectations strengthen after the inflation data, selling pressure may increase in the short term. However, the price being above the 20-day average (7633) could limit an excessive decline; nevertheless, due to the news flow, downside risk is more dominant.

US inflation accelerating in August means the Fed is moving closer to a rate hike, which is a positive catalyst for the DXY. Technical indicators are mixed: RSI at 54 is neutral, MACD is slightly below the signal line, but price is trading above SMA20 and SMA50. The change over the last 24 hours has been very limited (0.02%), so the impact of the news may remain limited. In the short term, I expect an upward movement in the dollar index, but additional confirmation is needed for a strong rally. I foresee a moderately confident upward trend.

The acceleration of US inflation in August is seen as a signal that the Fed is moving closer to raising interest rates. This could put pressure on gold prices, as rate hikes typically reduce the appeal of gold. Technically, the RSI is at 42, in neutral territory, and the MACD is below the signal line, indicating weak momentum. However, the price is well above the SMA20 and SMA50, suggesting that the medium-term uptrend continues. In the short term, a downward move is possible due to the news, but the decline may be limited due to the strength of the trend.