Major US Banks Expect 25 Basis Point Rate Hike from Fed in September

The news reflects the expectation that the Fed will raise interest rates by 25 basis points in September; this is generally perceived as positive for banks' net interest margins. JPM stock closed at 356.28, slightly above its 20-day average (354.76), but very close to its 50-day average (356.36). With an RSI of 54, it is in neutral territory and below the MACD signal line, indicating limited momentum in the short term. The impact of the news may be limited positive; however, if the market expectation is already priced in, the reaction may be weak. In the 1-3 day outlook, a slight upward trend is possible, but a strong breakout requires volume and additional confirmation.

The expectation of a 25 basis point rate hike by the Fed in September from major US banks is a negative signal for risky assets in the short term. Since GS stock is in the banking sector, the rate hike expectation is mixed for the sector, but it may reduce overall market risk appetite. Technical indicators are already weak: the price is just above the 20 and 50-day moving averages, RSI is neutral, MACD is in negative territory and below the signal line. The 0.94% decline in the last 24 hours and weak momentum indicate that selling pressure may continue with the impact of the news. However, the rate hike expectation may already be priced in, so the bearish signal is moderately reliable.

The news reflects the expectation of a 25 basis point rate hike by the Fed in September; this expectation may be largely priced in. For global banks like HSBC, a rate hike could support net interest margins, but economic slowdown concerns could suppress credit demand. Technical indicators are mixed: RSI at 53.8 is neutral, MACD is negative below the signal line, and the price is slightly above the 20-day SMA but below the 50-day SMA. The 1.4% decline in the last 24 hours indicates short-term weakness. Therefore, the impact of the news may be limited and directionless; the 1-3 day outlook is neutral.

The news reinforces expectations that the Fed will raise interest rates by 25 basis points in September, which is a positive short-term catalyst for the DXY. However, the RSI is at 74, in overbought territory, and the price is above the SMA20/SMA50, indicating that upside potential may be limited. The MACD is positive and above the signal line, so momentum is still bullish. The rate hike expectation may already be priced in, so the reaction could be limited. For 1-3 days, a slight upward bias, but profit-taking may occur.