DAX Holds Steady as Investors Eye Nvidia's Earnings and Global Economic Factors
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DAX-FLASH: Dax treads water for now - Nvidia in focus
FRANKFURT (dpa-AFX) - A little disillusionment is likely to set in on the German stock market on Thursday after the DAX narrowly missed its record high the day before. The after-hours stock market reaction to the highly anticipated quarterly report and outlook from US chip giant Nvidia the previous evening was characterized by disappointment. It was able to somewhat dampen the euphoria associated with artificial intelligence as a driving force for share prices, particularly in the technology sector. Nvidia shares slipped by almost 7 percent on Wednesday. They also dragged down other major semiconductor stocks such as Micron Technology, Qualcomm, Broadcom and AMD. However, analysts' initial reactions to Nvidia's quarterly results were largely positive. However, Stacy Rasgon from investment house Bernstein and Toshiya Hari from Goldman Sachs criticized the chip manufacturer's forecast for profitability. "The stock has been weak after the market, but the story remains solid," concluded Bernstein analyst Stacy Rasgon./bek/mis
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Dpa-AFX Borsentag at a glance: Dax keeps record high in sight
GERMANY: - LITTLE CHANGE - A little disillusionment is likely to take hold on the German stock market on Thursday after the Dax narrowly missed a record high the day before. The post-market reaction to the highly anticipated quarterly report and outlook from US chip giant Nvidia the previous evening was characterized by disappointment. It was able to somewhat dampen the euphoria associated with artificial intelligence as a driving force for share prices, particularly in the technology sector. Nvidia shares slipped by just under 7 percent on Wednesday. However, analysts' initial reactions to Nvidia's quarterly results were largely positive. However, Stacy Rasgon from investment house Bernstein and Toshiya Hari from Goldman Sachs criticized the chip manufacturer's forecast for profitability. "The share was weak after the close, but the story remains solid," concluded Bernstein analyst Stacy Rasgon. USA: - LOSSES - Prices on the US stock market fell on Wednesday ahead of Nvidia's figures. The technology-heavy Nasdaq-100 lost 1.18 percent to 19,350.78 points in the middle of the week. The broad market S&P 500 fell by 0.60 percent to 5,592.18 points. The Dow Jones Industrial fell by 0.39 percent to 41,091.42 points. On Monday, the leading New York index had reached a record high of 41,420 points. ASIA: - LOSSES - The most important stock markets in Asia reacted negatively on Thursday to the latest business figures of the US chip company Nvidia. The specialist for high-performance chips for computing-intensive AI applications was unable to meet all of its high expectations. The Hang Seng Index of the Hong Kong Special Administrative Region recently fell by 0.2 percent, while the CSI 300, which includes the most important Chinese mainland stocks, lost 0.1 percent. In Japan, the Nikkei 225 fell by 0.1 percent.
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The German stock market index DAX remains stable near record highs as investors await Nvidia's earnings report and assess various economic indicators. The market shows resilience amid mixed global cues.
DAX Maintains Stability Near Record Levels
The German stock market index DAX has been treading water, maintaining its position close to its recent record highs. As of midday, the DAX stood at 17,068 points, showing a marginal decline of 0.1 percent
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. This stability comes as investors carefully weigh various factors influencing the market sentiment.Nvidia Earnings in Focus
One of the key events capturing market attention is the upcoming earnings report from Nvidia, scheduled for release after US market close. Nvidia, a major player in the artificial intelligence (AI) chip market, has seen its stock price surge by 40 percent this year alone. The company's performance is viewed as a crucial indicator for the broader tech sector and the ongoing AI boom
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.Economic Indicators and Market Sentiment
Investors are also closely monitoring various economic indicators. The release of the purchasing managers' indices for the eurozone, Germany, and the USA later in the week is expected to provide insights into the current state of these economies. Additionally, the minutes from the last interest rate meeting of the US Federal Reserve are anticipated to offer clues about the future direction of monetary policy
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.Market Resilience Amid Mixed Signals
Despite some concerns, the DAX has shown resilience, maintaining its proximity to the record high of 17,198 points reached last week. This strength comes even as Wall Street saw a decline in the previous trading session, with the Dow Jones Industrial Average falling by 0.7 percent
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.Global Factors Influencing the Market
Several global factors are contributing to the current market dynamics. These include:
- The ongoing recovery in China's stock markets, which has provided some positive sentiment.
- Fluctuations in other major indices like the S&P 500 and Nasdaq.
- Movements in the bond markets, with US Treasury yields showing some changes.
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Investor Strategies and Outlook
As the market navigates through these various influences, investors are adopting a cautious yet optimistic stance. The ability of the DAX to maintain its ground near record levels suggests underlying strength in the German market. However, the upcoming economic data releases and corporate earnings reports are likely to play a significant role in determining the short-term direction of the index.
Conclusion
The German stock market, as represented by the DAX, continues to demonstrate resilience in the face of mixed global cues. While investors remain cautious, the index's stability near record highs reflects a generally positive sentiment. The upcoming Nvidia earnings report and various economic indicators will be crucial in shaping market direction in the coming days.
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