Stocks Recover from Nvidia Shakeout, Dollar Rises with US Treasury Yields

NVDA declined 5.6% over the past 24 hours to 166, with its RSI at 36.6 approaching oversold territory. MACD is in negative territory and just below the signal line, indicating weak short-term momentum. The price is trading below the SMA20 (169.6) and SMA50 (181.2), suggesting a deteriorated technical outlook. The news headline implies that equity markets are recovering from a Nvidia-driven shock; while this carries potential for a mild short-term relief, rising dollar and bond yields could limit risk appetite. Oversold conditions may support bargain hunting, but with the trend still downward, directional uncertainty is high.

GOOGL rose more than 3% over the past 24 hours to reach 298.75 and is trading clearly above its SMA20/SMA50 averages. With RSI at 62.5, it has not entered overbought territory, and MACD is trending positively above its signal line, indicating that short-term momentum remains supported. The news headline suggests that the shock originating from Nvidia has been overcome and risk appetite has recovered; such broad market recoveries generally benefit large technology stocks. However, rising dollar and bond yields could act as a brake on prolonged technology rallies. For this reason, I forecast a moderate upward bias over a 1-3 day view, while keeping confidence at a medium level.

DXY is trading at 103.17, above its 20-day and 50-day moving averages, indicating a positive short-term trend. Although the RSI at 63.9 is approaching overbought territory, it has not yet generated a sell signal; the MACD is slightly below its signal line, suggesting weak momentum. The theme of rising Treasury yields and a stronger dollar in the news headline supports the index. However, a stock market recovery could boost risk appetite and limit the dollar's upside potential. For the next 1-3 days, a moderate upward bias is expected, with a close above 103.30 needed for confirmation.

The news indicates that stocks recovered following the shock originating from Nvidia, signaling a partial improvement in risk appetite. The SPX rose 0.67% in the last close and is trading above its SMA20 (7583) and SMA50 (7546), confirming that the short-term trend remains positive. However, with an RSI of 52.7, it is in neutral territory and slightly below the MACD signal line (22.8 vs. 25.2), meaning momentum is not yet strong. The dollar's rise alongside bond yields could be a limiting factor for stocks. Therefore, I expect a moderate upward bias in the 1-3 day outlook, but with a medium confidence level.