Nvidia as Savior: Tech Giant Halts DAX Plunge – Rally Hope Lives
The sell-off in the DAX showed its first signs of slowing down yesterday, in anticipation of the quarterly report from the current stock market leader, Nvidia. Market uncertainty was palpable, but the tech giant did not disappoint: Nvidia shone with results that significantly exceeded analyst expectations and provided a thoroughly positive outlook for the next quarter. The stock rose over 4 percent in after-hours trading. Given Nvidia's 8 percent weighting in the S&P 500 and its central role in the Artificial Intelligence sector, the company appears to be halting the general market sell-off for now.
Ghost Dispelled? DAX Could Recapture 23,500 Points
The news from the US is expected to have a positive effect on the DAX, which has suffered heavy losses in recent trading days and was close to falling below the 23,000-point mark. This bogeyman now appears to be temporarily dispelled. The lead from the US is consequently positive, and the shock over the potential absence of a Fed rate hike seems to be priced in. Thus, nothing stands in the way of a corrective rally initially. A return above 23,500 points would be an important signal for a trend reversal today, Thursday.
Rheinmetall Under Pressure – Daimler Truck Knocks on Resistance
Despite the general easing in the tech sector, investors in Rheinmetall stock were hit hard yesterday, Wednesday: the stock incurred a loss of almost 7 percent during the day. On the other side, Daimler Truck Holding was at the top of the DAX list with a gain of over 3 percent. The Daimler Truck stock is now knocking on a resistance area at 36 euros. Should it manage to overcome this, prices around 38 euros are initially within the realm of possibility.
Technical Stalemate: Does the Nvidia Factor Decide the Direction?
Technically, the current situation in the DAX remains volatile, even though yesterday's trading was marked by a certain caution. Purely technically, a definitive stop to the sell-off cannot yet be confirmed. The undecided stance of market participants allows for interpretations in both directions. However, with the mentioned Nvidia factor, there is a slightly increased probability of a further price recovery that could free the DAX from its critical zone.
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