DAX Cracks 25,000: Nvidia Euphoria and Geneva Suspense
It was almost a given: by mid-week, the DAX pushed back above the psychologically vital 25,000-point mark. Investors were clearly in a buying mood on Wednesday, allowing the leading index to exit the floor with a strong performance of 0.76% at 25,175.69 points. SAP secured the title of the day's top performer with a gain of 0.9%, even before the highly anticipated figures from AI giant Nvidia hit the wires. The message was clear: a massive vote of confidence for the "powerhouse" of the tech world.
Nvidia Delivers: 73 Percent Revenue Surge Fuels the Market Party
And Nvidia delivered—big time! The company pulverized expectations with another record quarter, reporting a massive revenue jump of 73% to over $68 billion. The forecasts for the current fiscal year also set analysts' hearts racing. On paper, it seems straightforward: the AI bull market knows no end.
However, seasoned market wisdom advises caution: can it really be that simple? Often, such hype is followed by a phase of profit-taking once the initial dust has settled. Should the Nvidia stock turn south after the first celebratory jump, it could get turbulent for the DAX as well. The index is currently knocking once again on the massive resistance at 25,250 points. This "lid" now needs to be sustainably blown off.
Fateful Days in Geneva: Last Chance for Diplomacy?
While algorithms digest the Nvidia numbers, the eyes and ears of market participants will be turned toward Geneva over the coming days. Crucial nuclear talks are taking place there. Will the US and Iran manage to reach an agreement despite mutual threats and a looming ultimatum? This is likely one of the last chances to avert a threatened US attack and the associated outbreak of a devastating new war in the Middle East. A failure of these talks would send shockwaves through the markets and cause oil prices to spike uncontrollably.
Technical Summary: The Spark Needs to Catch
Technically, everything is set for a leap above the previous high. The DAX is lurking within striking distance of the resistance at 25,250 points. What’s missing now is the final, igniting impulse. Will it be Nvidia's top-tier results from last night, or will only a diplomatic solution in the nuclear dispute finally swing open the gates to new all-time highs? The next 48 hours will provide the answer.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.