US 10-Year Treasury Yield Exceeds 5% for First Time in 3 Years

GOOGL has risen 5.76% in the last 24 hours to reach 349.48, with RSI14 at 73.5, placing it in overbought territory. The US 10-year Treasury yield exceeding 5% for the first time in three years could create valuation pressure, especially for growth stocks, and may trigger profit-taking in the short term. MACD is positive and the price is above the SMA20/50, indicating that the medium-term trend remains strong; however, overbought conditions and the macro interest rate shock increase the risk of a short-term correction. Nevertheless, the news alone does not guarantee a sharp decline; if the market can digest the rate increase, the reaction may be limited. Therefore, for 1-3 days, I assess a downward bias with relatively moderate confidence.

The US 10-year Treasury yield surpassing 5% is generally a supportive factor for the dollar index. DXY is currently at 99.61 and trading above its 20-day and 50-day simple moving averages, indicating a short-term bullish trend. The RSI at 61.7 has not yet approached overbought territory, while the MACD is very close to its signal line and slightly negative. Rising yields could increase demand for the dollar, but if they create selling pressure in stock markets, the effect could be mixed with safe-haven demand for the dollar. Therefore, I assess the 1-3 day direction as upward, but the movement is likely to remain limited.