Dax Index Information: Markets Eye Powell’s Testimony as Tariff Dangers Loom…

US Markets Recap

On Monday, February 10, US fairness markets recovered from Friday’s pullback, with buyers ignoring US tariff threats. The Nasdaq Composite Index gained zero.98%, whereas the Dow and S&P 500 superior by zero.38% and zero.67%, respectively.

US steel producers led the positive factors, with Century Aluminum (CENX) surging by 10.22% whereas US Metal (X) rose four.65%. AI shares additionally trended larger, with Nvidia (NVDA) ending the session up 2.87%.

With a lightweight financial calendar, US overseas coverage and financial sentiment towards the US financial system influenced market developments.

Will the Fed Chair Powell Spook Buyers?

On February 11, Fed Chair Powell will ship his semi-annual testimony on Capitol Hill. Markets might be searching for:

• Insights into inflation developments and the Fed’s fee path.
• Feedback on labor market circumstances and client spending.
• Doable issues over tariff-driven inflation pressures.

A hawkish coverage stance, pushed by issues over tariff-induced inflation, may weigh on danger belongings. Tariffs could push import costs larger, fueling inflationary pressures. A extra hawkish Fed may result in larger borrowing prices, doubtlessly affecting company earnings. In the meantime, softer inflation rhetoric could assist danger belongings just like the DAX.

Close to-Time period Outlook

The DAX’s outlook hinges on Fed Chair Powell’s testimony and upcoming inflation information.

• Softer inflation and a dovish Fed Chair could gasoline danger asset demand, doubtlessly pushing the DAX above 22,000.
• Hotter-than-expected inflation numbers and a hawkish Fed Chair could pull the DAX towards 21,500.

Whereas Powell’s testimony and inflation information are key near-term drivers, commerce tensions may gasoline extra volatility. An escalation in US-EU commerce tensions may drag the DAX decrease, whereas a de-escalation could increase demand for danger belongings.

As of Tuesday morning, US futures pointed to a testy session, with the Nasdaq 100 mini falling 90 factors.

DAX Technical Indicators

Every day Chart

After Monday’s report excessive of 21,946, the DAX sits properly above the 50-day and 200-day Exponential Shifting Averages (EMAs), sending bullish worth alerts.

If the DAX surpasses Monday’s report excessive of 21,946, it may escape above the 22,000 threshold. A breakout from 22,000 could sign a transfer towards 22,350.

Conversely, a DAX drop to 21,750 could allow the bears to focus on 21,500 subsequent. A fall by 21,500 may deliver 21,000 into sight.

With the 14-day Relative Energy Index (RSI) at 71.31, the DAX stays in overbought territory (RSI larger than 70). Promoting strain could intensify if the DAX approaches the important thing resistance stage of 21,946.