Google stock sinks key support after the Fed
The action of the giant Alphabet, Google’s parent company, has just broken through a major support at $100 on which it had consolidated throughout the summer. The title was penalized by the renewed risk aversion and the particularly hawkish tone of the Fed on Wednesday evening.
The central bank raised its rates by 75 basis points as expected, but above all indicated that it wanted to continue to raise them and maintain them at 4.50-4.75% until the end of next year. Conversely, operators expected this rate to be maintained for only a few months in the first half before being lowered.
The stock was also penalized by a sharp downward revision of the FOMC’s economic outlook. The Central Bank Committee now expects near-zero growth this year (0.2%) and growth of just 1.2% next year from 1.7% and 1.7% respectively.
Alphabet (GOOGL) stock price weekly chart – key levels