Fed Boosts Credibility, but Hawkish Shift Unsettles Investors

The news indicates that the Fed's credibility has increased but it has signaled a hawkish shift; this could create a mixed impact on stock markets. GOOGL's technical indicators are also indecisive: RSI at 49 is in neutral territory, and MACD is below the signal line (1.06 vs 1.68), giving a weak momentum signal. The price is just below the 20-day moving average (345.30) and above the 50-day average (339.33), increasing the likelihood of a sideways trend in the short term. The hawkish Fed perception could put pressure on technology stocks, but the increase in credibility could provide limited support by reducing uncertainty. Therefore, I do not foresee a clear direction in the 1-3 day outlook; I expect a neutral trend.

SPX fell 1.49% in the last 24 hours to 7,553 and is trading below its 20- and 50-day moving averages. RSI at 37.6 confirms weak momentum, while MACD is in negative territory and below its signal line. The phrase 'hawkish shift' in the news implies delayed rate cut expectations, which could weigh on risk appetite. In the short term, the psychological support at 7,500 is critical; below this level, selling could accelerate. However, increased Fed credibility could reduce uncertainty in the medium term, so the bearish signal is given with limited confidence.

The Fed's hawkish pivot signal aligns with the NDX's 1.6% decline over the past 24 hours. RSI at 42 indicates weak momentum, while MACD remains negative below the signal line. Price trading below SMA20 and SMA50 confirms sustained short-term pressure. Uncertainty in the news flow may limit risk appetite and support the downward trend in the index. However, as it has not yet approached oversold territory, the decline may be limited.

The news headline states that the Fed has increased its credibility, but a hawkish turn is unsettling investors. A hawkish turn is generally a positive factor for the DXY, but the unease may cause short-term volatility. Technical indicators are mixed: price is slightly below the SMA20 and above the SMA50; RSI is neutral, MACD is below the signal line. The 24-hour change is positive and momentum, though weak, is upward. Therefore, I expect a slight upward bias in the short term, but confidence is low.