Fed's Rate Hike Will Shift Balances in Global Markets

DXY closed at 100.27, up 0.68% in 24 hours, with RSI at 69 approaching overbought territory. MACD is slightly above the signal line and price is above SMA20 and SMA50, supporting a short-term bullish trend. The Fed's rate hike news could be seen as a positive catalyst for the dollar index, but the elevated RSI indicates limited upside potential. Nevertheless, due to the news, a moderate upward movement in DXY is expected within 1-3 days. Short-term fluctuations may occur due to overbought conditions.

The Fed's rate hike news could suppress risk appetite and create downward pressure on the SPX. The price is trading below the 20 and 50-day moving averages, and the RSI at 37 indicates weak momentum. The MACD is below the signal line and in negative territory, suggesting that the short-term selling trend may continue. The 1.49% decline in the last 24 hours and the close at 7553 confirm that the price remains below resistance around 7600. However, since the magnitude of the rate hike and the Fed's tone are uncertain, the reaction may be limited; therefore, I maintain a moderate confidence level.

The news strengthens expectations of a Fed rate hike and could put pressure on risk assets. The NDX closed at 28,953, down 1.6% in the last 24 hours, with an RSI of 42 indicating weak momentum. The MACD is below the signal line and in negative territory, and the price is trading below the 20- and 50-day moving averages. This technical picture suggests that downside risk may persist in the short term. However, since the magnitude of the rate hike and the Fed's communication are uncertain, the reaction may be limited; therefore, the confidence level is kept at medium.

The Fed's interest rate hike news is generally a negative signal for gold prices, as rate hikes strengthen the dollar and reduce demand for gold. GLD's last close was at 4301.145, up 0.69% in 24 hours, but RSI14 at 39.1 indicates weak momentum. MACD is in negative territory and below the signal line, suggesting downward pressure may continue. The price is well above SMA20 and SMA50, increasing the risk of a correction after overbought conditions. The news may lead to short-term selling pressure, but certainty is low.