Welcome to Extreme Investor Network, where we provide you with expert insights and unique information on the stock market, trading, and Wall Street trends. In today’s blog post, we will be discussing the recent US market trends and how they may impact the DAX-listed stocks.
On Monday, October 7, the US equity markets opened the week on a negative note. The Nasdaq Composite Index dropped by 1.18%, while the Dow and the S&P 500 also saw losses of 0.94% and 0.96%, respectively. The main concerns driving this decline were related to the Middle East conflict and shifting sentiment towards the Fed rate path, which dampened demand for riskier assets.
Looking ahead, on Tuesday, the RCM/TIPP Economic Optimism Index is expected to play a key role in shaping sentiment towards the Fed rate path. Economists are forecasting an increase in the Index from 46.1 in September to 47.2 in October. Positive numbers could reduce bets on multiple Q4 2024 Fed rate cuts and boost consumer optimism, leading to increased private consumption.
Furthermore, we need to monitor FOMC member speeches for their views on the latest US Jobs Report and the timing of Fed rate cuts, as they could impact demand for DAX-listed stocks. Hawkish comments may push the DAX below 19,000, while positive views on the US economy and calls for multiple rate cuts could drive the DAX towards 19,250.
In the short term, DAX trends will likely be influenced by updates from the Middle East, central banks, and Thursday’s US CPI Report. Weak US inflation figures and support for multiple rate cuts could drive demand for DAX-listed stocks. Conversely, hawkish central bank comments or higher US inflation may dampen market risk appetite.
The DAX currently holds above the 50-day and 200-day EMAs, indicating bullish price trends. Investors should keep an eye on key levels such as 19,250, which could lead to a run at the all-time high of 19,492. On the downside, a break below 19,000 may bring the 18,750 level into play.
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