DAX takes a breather – Nvidia turmoil continues to reverberate

Mixed technology cues as AI demand holds up

Following its break above the 27,000-point mark and the subsequent profit-taking, the DAX is likely to trade in a calmer range as the week draws to a close. International market cues are mixed. While some Japanese semiconductor stocks managed to advance, numerous technology and AI companies in China came under heavier selling pressure. The announced tightening of US technology export and import restrictions targeting China is creating uncertainty.

However, the fundamental AI growth story remains largely intact. Convincing quarterly results from US technology companies Cisco and Applied Materials underline the continued strength of demand for high-performance infrastructure and semiconductor technology. Investors are increasingly distinguishing between short-term political and company-specific risks and the sector's long-term growth prospects.

Inflation data could drive fresh volatility

For the DAX, the immediate impact of the international technology turmoil remains manageable. Investors are therefore turning their attention back towards economic data. German wholesale prices released today rose by 8.8%, slightly exceeding expectations of 8.7%. Price pressures further up the supply chain remain a concern. Particularly following the recent easing in energy prices, investors will be watching closely for signs that these developments could once again pose risks to the broader inflation outlook.

Later in the session, attention will focus on third-quarter eurozone GDP figures and US producer prices. The latter, in particular, could trigger fresh market volatility. Following the stronger-than-expected rise in consumer prices, concerns are growing that inflationary pressures in the United States may prove more persistent than previously hoped. Another unexpectedly sharp increase in producer prices could reinforce expectations of further interest rate hikes, potentially putting renewed pressure on highly valued technology stocks in particular. The DAX is expected to trade within a range of 26,600 to 26,850 points as the week draws to a close.