Welcome to Extreme Investor Network, where we bring you the latest updates and insights on the Stock Market, trading, and all things Wall Street. Today, we dive into the recent developments in the market and what you need to watch out for in the coming days.
The Federal Reserve’s decision to maintain interest rates came as no surprise to the market. However, the hawkish FOMC Economic Projections caught many off guard. The Fed revised its Core PCE inflation and Fed Funds Rate projections for 2024, signaling a more aggressive stance than previously anticipated.
Despite the news, the market saw mixed movements on Wednesday. The Dow slipped slightly, while the S&P 500 and the Nasdaq Composite Index posted gains. Tech stocks saw increased buyer demand driven by favorable US inflation numbers. Siemens Energy AG, SAP, and Infineon Technologies were among the top gainers, while bank and auto stocks had a more turbulent mid-week session.
Looking ahead, German wholesale prices and Eurozone industrial production numbers are expected to drive investor attention on Thursday. A potential increase in wholesale prices could signal improving demand conditions and influence expectations of a July ECB rate cut. Additionally, US producer prices and jobless claims data are on the agenda, with softer-than-expected numbers potentially impacting inflationary pressures and investor sentiment.
In terms of technical indicators, the DAX is hovering above its 50-day and 200-day EMAs, pointing towards bullish signals. A break above the 18,650 level could propel the index towards the 18,800 handle and potentially reach the all-time high at 18,893. Conversely, a drop below the 50-day EMA could lead to a decline towards the 18,250 level. The 14-day RSI currently sits at 54.27, suggesting a possible return to the all-time high before hitting overbought territory.
Stay tuned for more updates on central bank chatter, economic indicators, and market movements. At Extreme Investor Network, we aim to provide you with unique insights and valuable information to help you navigate the world of trading and investing effectively.