Goldman Sachs Forecasts Three Fed Rate Hikes After New Inflation Data

Goldman Sachs' forecast of three Federal Reserve rate hikes is a short-term negative signal for equity indices; rising rate expectations could pressure valuations. However, the SPX has risen 1.96% in the last 24 hours and the RSI at 51.8 is in neutral territory, with no overbought condition. The MACD is in negative territory but above its signal line, indicating that momentum, though weak, is tending toward recovery. The price is above the SMA20 but below the SMA50, presenting an indecisive technical picture. Therefore, the impact of the news may be limited and volatile; a cautious downward bias is expected rather than a definitive decline.

Goldman Sachs' forecast of three Federal Reserve rate hikes could be a short-term pressure factor for risk assets. QQQ has risen 3.5% over the past 24 hours and its RSI stands at 51, meaning it is not in overbought territory; this may limit the impact of the news. The price is trading above the SMA20 but below the SMA50, and MACD is in negative territory, indicating a weak technical picture. Rate-hike expectations could create valuation pressure on technology stocks, but the possibility that the news is already priced in adds uncertainty. I therefore assess the direction as downward but with low-to-medium confidence.

Expectations of a Fed rate hike may lead to a short-term strengthening of the USD. The DXY's 24-hour rise of 0.68% and the SMA20 being above the SMA50 support the current upward trend. Although the RSI at 72 is in overbought territory, resistance levels may be tested in the short term. Overall, the DXY is expected to continue with a slight increase over the 1-3 day period.