Fed Raises Policy Rate by 25 Basis Points

The Fed's 25 basis point rate hike may create short-term pressure on stock valuations. GOOGL has risen 1.69% in the last 24 hours, and although its RSI at 59 has not approached overbought territory, it remains below the MACD signal line, giving a weak momentum signal. The price is trading above the SMA20 and SMA50, indicating that the medium-term trend is still positive. However, with the rate hike news, short-term profit-taking may be seen. Nevertheless, the reaction may be limited, as the market may have largely priced in this decision.

The Fed's 25 basis point rate hike, while in line with market expectations, indicates that the tightening cycle continues. The S&P 500 (SPX) closed down 0.69% at 7609, very close to its 20-day simple moving average (SMA20) of 7608, but remains below its 50-day SMA (SMA50) of 7636. The RSI is at 47.6, in neutral territory, and the MACD is slightly above its signal line in negative territory, suggesting a weak recovery attempt. The rate hike could dampen risk appetite in the short term and lead the index to test support at 7600. However, as the hike was expected, I anticipate limited downward pressure rather than a sharp sell-off.

The Fed's 25 basis point rate hike, while in line with market expectations, may suppress risk appetite in the short term. The NDX closed down 0.77% in the last 24 hours at 29,153 and is trading below its 50-day moving average (29,279). The RSI is at 49.9, in neutral territory, but the MACD is negative and below its signal line, indicating that downward momentum may continue. Profit-taking in technology stocks could be seen after the rate hike. However, the decline may be limited as the decision was already priced in.

The Fed's 25 basis point rate hike is a positive short-term catalyst for the DXY. However, the market may have largely priced in this move, as the RSI is near overbought territory at 65. The MACD is slightly above the signal line, and the price is trading above the SMA20 and SMA50, confirming the current uptrend. Nevertheless, if a 'dovish' tone is used after the decision, a limited pullback in the dollar index could be seen. I expect a moderate upward movement in the 1-3 day horizon, but the 100 level should be monitored as resistance.