Hot Inflation Fuels Fed's Fear of Massive Rate Hike, Bonds Shaken

Hot inflation data and fears of aggressive Fed rate hikes create a negative backdrop for growth stocks in the short term. Although GOOGL rose 1.47% in the last 24 hours, its RSI at 49 is in neutral territory and below the MACD signal line, indicating weak momentum. The price is trading just below the SMA20 (288.13); this level may act as short-term resistance. Turmoil in bond yields could pressure valuation multiples. Nevertheless, since indicators are not in oversold territory, the downside may be limited; I expect a cautious downward bias.

Hot inflation data and fears of aggressive Fed rate hikes are suppressing risk appetite; bond selloffs are creating a negative backdrop for equities. Although SPX has risen 1.96% in the last 24 hours, this move may reflect pre-news optimism and carries short-term profit-taking risk. RSI at 51.8 is in neutral territory, while MACD is above its signal line but still in negative territory; momentum is weak and direction uncertain. Price is above SMA20 but below SMA50, indicating that the short-term recovery has not yet turned into a trend reversal. If the news strengthens hawkish Fed expectations, downward pressure is likely within 1-3 days, but the magnitude of the reaction may be limited.

Hot inflation data strengthens expectations for more aggressive Fed rate hikes, which is pushing up US Treasury yields and supporting the dollar. DXY is already above its 20- and 50-day moving averages, with RSI at 66, meaning momentum is positive but approaching overbought territory. MACD is slightly above the signal line, confirming the short-term upward bias. Nevertheless, with RSI near 70, upside room is limited and profit-taking risk is present. In the 1-3 day outlook, I expect moderate upward pressure on the dollar index.