Economists: Fed likely to raise rates on Wednesday and at least one more hike may follow

The Fed's rate hike and additional hike signal could create valuation pressure for growth stocks; GOOGL is also in this group. However, the price is above the 20 and 50-day moving averages, RSI at 56 is neutral, and MACD is in positive territory, so the technical outlook has not yet deteriorated. Therefore, the news may create a short-term downward trend but is not sufficient for a sharp sell signal. The SMA20 around 334 should be the first support, while the SMA50 around 337 should be closely monitored. The size of the rate hike and the Fed's tone will be decisive; in case of a hawkish surprise, the decline could accelerate.

The news is a positive catalyst for DXY with the Fed's rate hike and additional hike expectations. However, with RSI at 75.6, it is in overbought territory and the price is above SMA20/50, suggesting that upside potential may be limited in the short term. MACD is positive and above the signal, momentum remains strong. The rate hike expectation may already be priced in, so the reaction could be limited. For 1-3 days, the direction is up, but correction risk exists.

The Fed's rate hike and additional hike signal is generally a negative factor for stock indices. The SPX is down 0.49% in the last 24 hours, trading at 7655.5, below its 50-day moving average (7673). The RSI is at 51, in neutral territory, but the MACD is negative and below the signal line, indicating weak momentum. The news could increase selling pressure in the short term, with a risk of a pullback towards the index's 20-day average of 7633. However, the decline may be limited as the market has largely priced in the rate hike.

The Fed's rate hike and expectations of additional hikes could create short-term downward pressure on NDX. However, the price stabilizing around SMA20 and SMA50 and the RSI remaining neutral at the 50 level indicate that the decline may be limited. The MACD being below the signal line confirms weak momentum. Since the news is largely priced in, the impact may remain limited. Nevertheless, the hawkish Fed perception could reduce risk appetite.