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DAX Seen Lower as Profit-Taking Follows Rally, While AI-Chip Momentum Buoys Wall Street

Investors pivot to upcoming data that may reset rate expectations after a fast January rally.

Overview

  • Broker IG models the DAX about 0.3% lower at the open near 25,288 after a 0.3% gain to 25,352 in the prior session.
  • U.S. stocks advanced as enthusiasm for artificial intelligence returned following TSMC’s strong quarter, with the Dow up 0.6%, the S&P 500 up 0.3% and the Nasdaq up 0.2%.
  • Oil retreated after de-escalation signals on Iran, with Brent down roughly 3% to about $64 as President Trump cited reduced violence and no current plans for mass executions.
  • Earlier pressure from disappointing results at Citigroup, Bank of America and Wells Fargo weighed on sentiment, reinforcing the rotation away from major U.S. banks.
  • Traders are watching Germany’s first 2025 GDP estimate and U.S. labor updates, with stronger readings seen as reducing the likelihood of further Federal Reserve rate cuts.