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Published: 18 June 2026,06:38
Daily Market Analysis New
*U.S. equities retreat after a hawkish Fed tone weighs on risk sentiment
*Fed projections show several officials expect at least one rate hike by end-2026
*SpaceX and broader technology shares decline as higher-rate concerns pressure growth stocks
U.S. equity markets tumbled slightly after Kevin Warsh delivered a hawkish tone during his first FOMC meeting as Fed Chair, prompting a selloff in U.S. bonds and pushing Treasury yields sharply higher. The move pressured risk sentiment as investors reassessed the outlook for interest rates.
The S&P 500 and Nasdaq both declined by more than 1% as traders increased bets that the Federal Reserve’s next move could be a rate hike rather than a rate cut. Warsh highlighted the need to keep inflation under control, while other policymakers projected that interest rates may rise later this year if inflation remains persistent.
The Federal Reserve left interest rates unchanged as widely expected. However, the latest quarterly projections showed that nine central bank officials expect at least one rate hike by the end of 2026 to combat higher inflation. The policy statement also removed previous language that had pointed toward the possibility of rate cuts this year, reinforcing the market’s view that the Fed is shifting toward a more hawkish stance.
Following the meeting, short-term U.S. interest rate futures priced in a higher probability that the Fed could deliver a rate hike as soon as September instead of keeping rates unchanged. According to CME Group’s FedWatch tool, bets that rates would remain steady by year-end fell to around 13%, compared with approximately 40% on Tuesday.
Technology shares came under pressure as higher Treasury yields weighed on growth valuations. In individual stocks, shares of Elon Musk’s SpaceX closed down 4.9%, marking the space and AI company’s first decline since its market debut on Friday. Broader technology shares also experienced selling pressure as investors adjusted to the possibility of a higher interest rate environment.
Overall, the hawkish Fed message has created a more challenging backdrop for U.S. equities, particularly growth and technology stocks. If Treasury yields continue to rise and rate hike expectations strengthen further, equity market upside may remain limited in the near term.
Technical Analysis
NASDAQ, H4:
Nasdaq is trading lower after retracing from the 30,240.00 resistance level, with price action now testing the 29,390.00 support level.
Momentum indicators are turning cautious. The MACD is showing diminishing bullish momentum, while the RSI at 49 is forming a bearish crossover, suggesting downside pressure may continue if support breaks.
A confirmed breakdown below 29,390.00 could extend losses toward the next support at 28,480.00, signaling a deeper short-term correction.
However, if bearish momentum fails to sustain, Nasdaq may stage a technical rebound and retest the 30,240.00 resistance level, followed by 30,720.00 if buying momentum strengthens.
Resistance Levels: 30240.00, 30720.00
Support Levels: 29390.00, 28480.00
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