Hawkish Messages from the Fed: US 10-Year Treasury Yield Approaches 5%

The news could suppress risk appetite as the Fed's hawkish tone and the 10-year Treasury yield approaching 5% weigh on sentiment. Although the SPX has risen 1.2% in the last 24 hours, the MACD remains in negative territory and below its signal line, and the price is trading below the SMA50. The RSI at 51 is neutral, with no overbought or oversold signal. In the short term, selling pressure may be seen in rate-sensitive sectors, but holding above the SMA20 could limit downside. Therefore, I expect a moderate downward bias.

The news highlights the Fed's hawkish stance and rising bond yields, creating a supportive backdrop for DXY. DXY is already above its 20- and 50-day moving averages and has risen 0.58% in 24 hours; although RSI at 68 is approaching overbought territory, there is not yet a confirmed reversal signal. MACD is above the signal line and in positive territory, supporting upward short-term momentum. However, given the elevated RSI level and the possibility that the interest-rate news may be largely priced in, there is a risk that the upside move remains limited. Therefore, I expect a moderate upward bias in the 1-3 day outlook, but a gradual rise is more likely than a sharp rally.