Welcome to Extreme Investor Network, where we provide expert analysis and insights into the stock market, trading, and all things Wall Street. Today, we will discuss the latest US market trends and expert views on the labor market to help you stay informed and ahead of the game in your trading strategies.
On Thursday, August 8, the US equity markets saw a rebound from the previous session’s losses. The Nasdaq Composite Index surged by 2.87%, with the Dow and the S&P 500 also posting strong gains of 1.76% and 2.30%, respectively.
Expert Views on the US Labor Market:
According to Wall Street Journal Chief Economics Correspondent Nick Timiraos, the latest jobless claims data showed a drop to 233,000, alleviating concerns of a weakening labor market. Claims remain in line with previous year levels, indicating stability.
Arch Capital Global Chief Economist Parker Ross pointed out the discrepancy between initial and continuing jobless claims, emphasizing the challenges faced by unemployed workers in finding new jobs.
Looking ahead, investors should keep an eye on FOMC member commentary on the economy, labor market, and Fed rate path, as they could impact buyer demand for stocks listed on the DAX.
Near-Term Outlook:
Corporate earnings, German inflation data, and central bank statements will be key drivers of DAX trends in the near term. Positive German inflation numbers could challenge expectations of ECB rate cuts and boost investor demand for DAX-listed stocks.
In the futures market, the DAX was up 20 points, while the Nasdaq mini was down 31 points. Better-than-expected inflation numbers from China have contributed to gains in Asian markets, setting a positive tone for the European session.
To stay informed and manage risk, investors should keep a close watch on corporate earnings releases, German inflation updates, and expert commentary. Our latest news and analysis will help you make informed trading decisions.
DAX Technical Indicators:
The DAX is currently trading above the 200-day EMA but below the 50-day EMA, signaling a bearish near-term outlook but bullish longer-term prospects.
A breakout above 17,750 could push the DAX towards 18,000, with a potential move towards the 50-day EMA. On the downside, a break below the 17,615 support level and the 200-day EMA could see the DAX test the 17,003 support level.
The 14-day RSI at 39.71 suggests a potential drop to the 17,003 support level before reaching oversold territory.
Stay tuned for more updates and expert insights on the stock market and trading from Extreme Investor Network. Happy trading!