Welcome to Extreme Investor Network, your go-to source for all things stock market, trading, and Wall Street related. Today, we bring you the latest insights into US market trends and what to watch out for in the near term.
On Tuesday, US Equity Markets saw a reversal of gains as ASML triggered a tech sector rout with disappointing earnings and a weaker outlook for 2025. The Nasdaq Composite Index declined by 1.01%, while the Dow and the S&P 500 ended the session down 0.75% and 0.76%, respectively.
Looking ahead, investors should keep an eye on FOMC member speeches on Wednesday. Insights into the economic outlook, the labor market, inflation, and the Fed rate path could influence the DAX. Fed support for rate cuts in November and December could send the DAX higher, while calls to delay rate hikes due to sticky inflation could drive it lower.
In the near term, trends will likely depend on Euro area inflation-related data, the ECB monetary policy decision, and corporate earnings. Weaker inflation and speculation about ECB rate cuts could drive demand for DAX-listed stocks, but weak corporate earnings could weigh on sentiment.
Technical indicators for the DAX show that it remains well above key EMAs, confirming a bullish trend. A breakout above 19,634 could signal a move toward 19,750 and potentially 20,000. On the downside, a fall through 19,350 could indicate a drop toward 19,000.
As always, stay informed with our latest news and analysis to effectively manage your risks. Keep an eye on central bank chatter, corporate earnings, and China developments as they could impact market sentiment. Extreme Investor Network is your partner in navigating the complexities of the stock market and making informed investment decisions.