Major US Banks Raise Prime Rate After Fed's First Rate Hike Since 2023

The Fed's first rate hike since 2023 and banks raising their prime rates could pressure stock valuations. GOOGL's RSI is at 49.4, in neutral territory and below the MACD signal line, indicating weak short-term momentum. The price is below the SMA20 but above the SMA50, pointing to a mixed technical picture. The rate hike news is generally perceived as negative for tech stocks, but market expectations may be largely priced in. Therefore, I expect a downward trend in the short term, but with low certainty.

After the Fed's rate hike, major banks raising their prime rates could support JPM's net interest margin expectations, potentially acting as a positive short-term catalyst. However, the stock closed down 2.2% at 349.07 in the last 24 hours, just below its 20-day SMA (349.17), with the 50-day SMA (352.59) acting as resistance. The RSI is at 46.5, in neutral territory, and the MACD is slightly above the signal line in negative territory, indicating weak momentum but no oversold condition. The news may have already been priced in; therefore, the bullish signal is given with limited confidence. A sustained uptrend would not be confirmed without a close above 352.6.

After the Fed's rate hike, major banks raising their prime rate improves net interest margin expectations for banks like BAC, a positive signal in the medium term. However, the stock has fallen 8% in the last 24 hours, with RSI at 28 in oversold territory and MACD negative. While this increases the likelihood of a short-term bounce, the overall trend is weak. The news impact may be limited; a slight upward correction is expected in the 1-3 day outlook. Nevertheless, there is a risk that the rate hike triggers recession concerns across the market.

After the Fed's rate hike, banks raising their prime rates could increase borrowing costs and put pressure on financial and interest-rate-sensitive sectors. Citigroup (C) stock may be negatively affected in the short term by the rate increase, as higher rates could slow loan demand and the impact on the bank's net interest margin is uncertain. Technical indicators are already weak: the price is below the 20- and 50-day moving averages, RSI at 38.6 is approaching oversold territory, and MACD is in negative territory below the signal line. This outlook suggests that downside risk continues in the short term. However, the news impact may be limited; the market may have largely priced in the rate hike.