The domestic stock market is trading in a friendly direction on Wednesday. Investors are venturing out of cover again after losses the previous day.
The DAX started the middle of the week at the previous day’s level at 23,180.93 points and largely continued to rise over the course of the week.
Investors will initially remain largely defensive about the signals that the chip company NVIDIA will provide on the booming topic of artificial intelligence after the US stock market closes. In addition, the minutes of the most recent US Federal Reserve meeting, which are due in the evening, could provide investors with important insights into a possible cut in key interest rates in December.
Latest DAX records
On October 9th, the DAX reached a new record high of 24,771.34 points. Ultimately, it ended that day at 24,611.25 units, which was also a new record based on the closing price.
DAX chart technology at a glance
The DAX is at its lowest level since June, chart-wise, after falling below the 200-day average the day before. The last time this longer-term indicator was broken was in April, after US President Donald Trump triggered the tariff chaos. At that time, however, the average line was quickly exceeded again.
Investor sentiment deteriorated rapidly
The mood on the stock market had deteriorated rapidly recently. Just a week ago it looked as if the DAX would return to its October record of 24,771 points. The Dow Jones was already approaching a high. But suddenly interest rate worries dominated people’s minds.
Doubts about whether the US Federal Reserve will cut interest rates again in December drove investors to take profits on stocks and buy bonds. The Bund future, which reflects a fictitious federal bond with a 10-year term, has now broken its correction trend since June.
Eyes on NVIDIA shares and balance sheet
The quarterly report from the AI giant NVIDIA late in the evening German time is of enormous importance for the further stock market trend. On the one hand, because growth stocks in particular are sensitive to interest rates. And on the other hand, because the profitability and stock valuations of the booming topic of artificial intelligence have recently been increasingly questioned.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires
Image sources: Julian Mezger for Finanz Verlag, Pavel Ignatov / Shutterstock.com