market report
The ongoing hype about artificial intelligence has given the world’s most valuable listed chip company fabulous figures. The Nvidia euphoria should also give the DAX a decent boost.
The record results of the US chip manufacturer Nvidia inspire the global stock markets. The most valuable publicly listed semiconductor manufacturer in the world has exceeded market expectations with its fabulous numbers. That should also give the DAX a strong boost. The broker IG appraises the leading German index 0.6 percent higher at 15,828 points. The day before, the DAX had closed 0.2 percent higher after a roller coaster ride – and thus entered the third day of profits in a row.
The AI boom is causing Nvidia’s business to grow explosively. In the past quarter, the chip company just doubled its sales year-on-year to $13.5 billion. Nvidia’s boss and co-founder Jensen Huang even sees a new computer era dawning. In after-hours trading, Nvidia shares rose about 6.5 percent. In the year to date, the papers have already gained more than 200 percent.
Can the DAX now, thanks to Nvidia, build on its strong upward momentum from the beginning of the week? The bulls’ first milestone would now be yesterday’s daily high: At 15,821 points, the DAX buyers lost courage. A jump above that would push prices further. In general, however, the technical picture in the DAX has brightened significantly in the last few days after the German stock market barometer got the curve just above its July low last Friday and recaptured the important zone at 15,700 points.
Tailwind for the DAX will also come from the markets in Asia in the morning, where Nvidia’s record results will also give the stock markets a boost. The Nikkei Index, which comprises 225 stocks, is up 0.6 percent shortly before the close in Tokyo. The Shanghai stock exchange is 0.7 percent higher.
In anticipation of brilliant figures from the chip developer Nvidia, Wall Street investors had already grabbed technology stocks again in the middle of the week. The index of the technology exchange Nasdaq closed 1.6 percent higher at 13,721 points.
Meanwhile, a disappointing outlook from US sporting goods retailer Foot Locker dampened sentiment in the retail sector. The Dow Jones index of standard values was only 0.5 percent higher at 34,472 points from trading. The broad S&P 500 gained 1.1 percent to 4,436 points.
The euro is stable in early forex trading. The European common currency is currently trading at $1.0867, roughly the same as the previous day. The gold price can continue to establish itself above the $1,900 mark. An ounce of gold is trading at $1,921 this morning after temporarily falling as low as $1,885 in August.
VW draws attention to itself in the DAX. The lack of semiconductors has hit Europe’s largest carmaker hard since the end of 2020 – now the group is cautiously giving the all-clear. There are currently no more acute bottlenecks, said Purchasing Director Dirk Große-Loheide. “In the last six to eight months we haven’t lost a single vehicle in production because of semiconductors.”
The US automaker General Motors wants to cut around 940 IT jobs in Arizona and thus almost completely stop its IT activities in the state for cost reasons. The affected IT staff could apply for vacancies in other states, the company said. GM had already announced in January that it would reduce running costs by at least two billion dollars, including through downsizing.
With Esmark withdrawing, the way is clear for Cleveland-Cliffs to acquire US Steel. The industrial holding Esmark announced yesterday (CEST) that it did not want to submit an offer. Chairman and CEO Jim Bouchard cited support from the Cleveland Cliffs union as the reason.