Fed Official Daly: Rate Hikes May Be Needed as Inflation Worsens

Although SPX has risen 0.72% in the last 24 hours, the price is below the SMA20 (7592) and below the MACD signal line, trading in negative territory; RSI at 49 is neutral. The hawkish tone could push bond yields higher, putting pressure on equity valuations. However, the price remaining above the SMA50 (7530) and the RSI not being in oversold territory may limit a sharp decline. Overall, I expect a slightly downward bias, but the news impact may be limited and volatile.

Fed official Daly's hawkish comment that rate hikes may be needed if inflation deteriorates could create short-term pressure on growth stocks. GOOGL has risen 2.97% in the last 24 hours and is just below its 20-day SMA (296.33), indicating that short-term momentum is vulnerable to weakening. The RSI at 54 is in neutral territory and the MACD is below its signal line (1.36 < 1.93), suggesting that upward momentum is exhausted. Nevertheless, since the rate hike is still a conditional statement, the impact may be limited; a moderate pullback is expected rather than a sharp sell-off. The 50-day SMA (291.02) should be watched as support.

Fed official Daly's hawkish comment that rate hikes may be needed if inflation worsens could create short-term upward pressure on the DXY. The index is already trading above its SMA20 and SMA50 at 103.41, with a positive 24-hour change; RSI14 at 68 is approaching overbought territory. MACD is slightly above its signal line, momentum remains positive but is weakening. Although strengthening hawkish expectations support the dollar, the elevated RSI may limit upside potential. Therefore, I foresee a moderate upward bias, with additional confirmation needed for a strong breakout.

Fed official Daly's hawkish-toned statement that a rate hike may be needed as inflation worsens could create short-term pressure on gold prices. However, an RSI14 reading of 28.7, near oversold territory, and MACD trading slightly above its signal line suggest the decline may remain limited. The abnormal appearance of the last_close and change_pct_24 values in the indicators creates uncertainty about data quality; therefore, signal reliability is low. Overall, while rate-hike expectations are negative for gold, oversold conditions could trigger bargain buying. A downward but volatile trend is expected in the short term.