85% of Economists Expect the Fed to Raise Interest Rates

GOOGL has risen 4.6% in the last 24 hours to reach 346.13, with its RSI14 at 69.6, approaching overbought territory. Expectations of a Fed rate hike could pressure growth stocks and trigger short-term profit-taking. The MACD is positive and the price is above the SMA20 and SMA50, but this positive technical picture contrasts with the news. The high likelihood of a rate hike increases downside risk for GOOGL due to valuation pressure. Nevertheless, the market expectation may be largely priced in, so the decline could be limited.

Expectations of a Fed rate hike could put pressure on risky assets. However, the current technical picture is mixed: RSI at 47.9 is neutral, MACD is in negative territory but above the signal line (slightly positive momentum), and the price is just above the SMA20 but below the SMA50. Therefore, while the news creates short-term downside risk, technical indicators are showing a weak trend and do not signal a sharp decline. Nevertheless, selling pressure may increase with rate hike expectations, so I anticipate a downward bias.

DXY is currently at 99.49, showing a positive trend with a 0.40% increase over the past 24 hours. The RSI is at 57.8, not yet approaching overbought territory, while the MACD is very close to its signal line and carries a slight risk of a bearish crossover. The news reinforces expectations of a Fed rate hike, which is generally a positive factor for the dollar index. However, the market may have largely priced in this expectation, so the impact could be limited. In the short term (1-3 days), an upward movement is possible, but the 99.50-99.60 resistance zone and the risk of the MACD dipping below its signal line pose challenges.

Expectations of a Fed rate hike could create pressure on risky assets. NDX is trading at 29203, down 1% in the last 24 hours, and below its 20-day and 50-day simple moving averages. The RSI is at 45, indicating a neutral stance, but the MACD is negative and below its signal line, suggesting weak momentum. If news strengthens the likelihood of a rate hike, selling pressure may increase in the short term. However, market expectations may already be largely priced in, so the impact could be limited.