US Markets Recap: Insights from Extreme Investor Network

On February 10, US equity markets exhibited a notable rebound from the previous week’s downturn, as investors appeared largely unfazed by looming tariff threats. The Nasdaq Composite Index led the charge, advancing 0.98%, while the Dow Jones Industrial Average and S&P 500 followed closely with gains of 0.38% and 0.67%, respectively.

A particularly strong performance from US metal producers was a key driver of this recovery, with Century Aluminum (CENX) soaring by an impressive 10.22% and US Steel Corp (X) also enjoying a boost, rising 4.65%. Additionally, the technology sector continued to demonstrate resilience, as AI stocks, especially Nvidia (NVDA), ended the day up by 2.87%.

Given the light economic calendar, broader trends were influenced significantly by foreign policy and the prevailing economic sentiment towards the US economy. At Extreme Investor Network, we believe that understanding these macroeconomic factors is crucial for effective investing strategies. Our comprehensive analysis tools provide you with real-time insights into market sentiments, enhancing your decision-making process.

Will Fed Chair Powell Spook Investors?

Investors are closely monitoring the upcoming semi-annual testimony from Fed Chair Jerome Powell on February 11. This event is pivotal for the markets and will provide insights into several critical areas, including:

• Inflation Trends and Interest Rate Predictions: Powell’s commentary will be scrutinized for hints about future rate changes, particularly as they relate to inflation.
• Labor Market Dynamics and Consumer Spending: Observations on these factors could signal the Fed’s approach to monetary policy moving forward.
• Tariff-Driven Inflation Concerns: Acknowledgment of how tariffs might elevate import prices and contribute to inflation could weigh heavily on market sentiment.

A hawkish stance from the Fed, especially regarding concerns over an inflation spike due to tariffs, could trigger volatility in risk assets, elevating borrowing costs and impacting corporate earnings. Alternatively, if Powell adopts a softer tone on inflation, we may see renewed interest in riskier assets. At Extreme Investor Network, we equip investors with tools to gauge market reactions before, during, and after such testimonies, ensuring you stay ahead of the curve.

Near-Term Outlook: DAX Predictions

The immediate outlook for the DAX is closely tied to Powell’s testimony and upcoming inflation reports. Analysts predict that:

• Softer Inflation Forecasts and a Dovish Fed: Such scenarios could drive demand for risk assets, potentially propelling the DAX above the 22,000 mark.
• Hot Inflation Data Coupled with a Hawkish Fed: On the flip side, stronger-than-expected inflation could pull the DAX towards 21,500.

Beyond these considerations, trade tensions—particularly between the US and EU—remain a wildcard that could inject additional volatility. A rise in tensions may weigh on the DAX, while a resolution could uplift risk asset demand. At Extreme Investor Network, we continuously monitor these dynamics, providing our subscribers with timely updates to maximize their trading strategies.

As we approach Tuesday morning, US futures hint at a volatile session ahead, with the Nasdaq 100 mini indicating a decline of 90 points.

DAX Technical Indicators You Need to Know

Looking at technical indicators, the DAX has garnered considerable attention following its record high of 21,946. It currently sits well above both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating bullish momentum.

Investors should keep an eye on these critical thresholds:

• Should the DAX breach the 21,946 record high, it could push beyond the coveted 22,000 level, potentially targeting 22,350.
• Conversely, a downturn to 21,750 could enable bears to eye 21,500, while a breach of this level might draw the index towards 21,000.

Notably, the 14-day Relative Strength Index (RSI) currently sits at 71.31, highlighting that the DAX is in overbought territory. If the index approaches the key resistance at 21,946, selling pressure may intensify, presenting opportunities for strategic trading movements.

At Extreme Investor Network, we’re dedicated to empowering investors with the latest market data and analysis. Our insights help you navigate these pivotal moments in the market confidently, positioning you for success in a constantly changing financial landscape.

For more detailed analyses, strategies, and real-time updates, stay connected with Extreme Investor Network—your go-to source for maximizing your investment potential.