Fed Raises Rates for First Time in 3 Years; One More Hike Expected

The Fed's first rate hike in three years and the expectation of another increase is generally a negative signal for stock markets. The SPX has already fallen 1.1% in 24 hours to 7,588.93 and is trading below its 20-day moving average (7,604.81). With an RSI of 40.86, momentum is weak, while MACD is in negative territory and below its signal line. This technical picture, combined with the rate hike news, suggests that selling pressure may continue in the short term. However, it is also worth considering that the decline may be limited, given the possibility that the rate hike is already priced in and that oversold conditions have not yet materialized.

The Fed's first rate hike in three years and the expectation of another increase are negative factors for the NDX in the short term. Technical indicators are already weak: the price is below the SMA20 and SMA50, MACD is negative and below the signal line, and RSI at 45 is neutral-weak. The rate hike could pressure growth stocks, but the market may have largely priced it in. Nevertheless, downside risk is likely to persist in the 1-3 day horizon. Caution is warranted; a moderate weakening is expected rather than a sharp decline.

The Fed's first rate hike in three years and expectations of another increase are fundamentally positive catalysts for the DXY. However, the price is already near the 100 level and RSI14 at 73.9 is in overbought territory, which could limit short-term upside potential. The MACD is above its signal line and the price is above the SMA20/SMA50, so the trend is still upward. The news may already be priced in; therefore, there is a risk of a 'sell the news' reaction. Nevertheless, considering the fundamental outlook and technical momentum, I expect a slight upward bias over the next 1-3 days.

The Fed's first interest rate hike in three years and the expectation of another increase are negative developments for gold prices. Rate hikes generally reduce the appeal of non-yielding assets like gold. However, technical indicators are giving mixed signals: RSI at 40.5 is close to oversold territory, MACD is in negative territory and below the signal line. The fact that the price is well above the SMA20 and SMA50 (4291 vs ~395) is noteworthy and may indicate an inconsistency in this data set. In the short term, downward pressure is expected, but oversold conditions could lead to a limited rebound.