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The tech sector bore the brunt of the market sell-off, with the Nasdaq Composite Index plunging 4%, while the Dow and the S&P 500 slid 2.08% and 2.70%, respectively.
In the bond markets, 10-year US Treasury yields dropped to 4.2% before closing the session at 4.219%, reflecting market caution over Trump’s priorities on tariffs.
US JOLTS Report: Job Openings Data in Focus
On Tuesday, March 11, the US labor market will be back in focus after the February Jobs Report. Economists forecast JOLTS job openings to rise from 7.6 million in December to 7.75 million in January.
A larger job openings reading could ease immediate recession fears. Rising employment could bolster consumer confidence and wage growth. With private consumption accounting for over 60% of US GDP, rising wages may boost consumer spending and the economy. A rosier demand outlook could drive demand for German-listed stocks.
Conversely, an unexpected fall in job openings could intensify speculation about a US recession, impacting risk assets.
Beyond the data, traders should monitor tariff developments for market direction.
Near-Term Outlook
The DAX’s near-term trajectory will depend on ECB policy, tariff developments, and fiscal policy progress:
- Bearish Scenario: Rising US-EU trade tensions, limited fiscal progress in Germany, and a hawkish ECB could push the DAX below 22,500.
- Bullish Scenario: A dovish ECB stance, easing trade tensions, and fiscal policy advancements could drive the DAX toward a record high of 23,476.
As of Tuesday morning, US futures pointed to a cautious start to the session, with the Nasdaq 100 mini up 30 points.
DAX Technical Indicators
Daily Chart
Despite the March 10 sell-off, the DAX remains well above the 50-day and 200-day Exponential Moving Averages (EMAs). Recent trends indicate heightened volatility, even as the broader trend remains bullish.
If the DAX returns to 23,000, the bulls could target the record high of 23,476 next. A break above 23,476 may support a move toward 23,750, a key resistance level.
Conversely, a DAX break below 22,500 could bring 22,000 into sight. A fall through 22,000 may enable the bears to target the 50-day EMA.
The 14-day Relative Strength Index (RSI) at 54.29 suggests the DAX could climb to the March 6 record high of 23,476 before entering overbought territory (RSI > 70).
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