DAX holds back as Nvidia delivers on earnings and outlook

Better-than-expected quarterly results from Nvidia, combined with a highly upbeat outlook, sparked not only a sharp after-hours rally in the stock itself but also a broad wave of buying across semiconductor shares in Asia. Salesforce and cybersecurity company CrowdStrike also impressed with their results. The cautious positioning seen among investors in recent days could now begin to unwind, potentially providing the DAX with fresh upward momentum.

The Jackson Hole central banking symposium is likely to provide the next major market catalyst, particularly with tomorrow afternoon’s speech by Fed Chair Kevin Warsh. US inflation remains well above the Federal Reserve’s 2% target and has yet to show any meaningful signs of easing. However, energy prices, and crude oil in particular, have declined in recent days, giving the Fed some breathing room and allowing policymakers to hold off on further rate hikes for the time being.

Today’s economic calendar features Germany’s GfK Consumer Climate Index and initial jobless claims from the United States. The positive sentiment following Nvidia’s results has also shifted the expected trading range for the DAX higher. From a technical perspective, the index is expected to trade within a range of 26,250 to 26,500 points during today’s session.