The Dax is about to set a new record. Figures from Siemens, Merck and other companies could provide new impetus. Meanwhile, the leadership crisis at Nvidia is once again coming into focus.
Price table of the Frankfurt Stock Exchange. Photo: Handelsblatt
Dusseldorf. The leadership crisis at chip manufacturer Nvidia could have a greater impact on the international financial markets on Thursday than in previous days. The focus is on a report in the New York Times, according to which CEO Jensen Huang is said to have had another affair, this time not with an alleged spy, but with a manager who reports directly to him. The new scandal pushed the shares down more than eight percent after trading.
Meanwhile, a change in leadership became increasingly likely. On Wednesday evening (local time), Nvidia's management board discussed the future of the CEO, as reported by the Bloomberg news agency.
Nvidia
US media report another affair - Nvidia CEO Jensen Huang apparently about to be replaced
Renewed turbulence in the key AI industry could jeopardize the DAX's record ambitions. The leading index closed 1.2 percent higher at 26,663 points on Wednesday - only around 30 points below its previous record. Solid company figures and investor confidence have recently supported prices. This means that the Dax has almost made up for the recent setback caused by the sell-off in technology stocks.
Early on Thursday morning, the Dax was initially in positive territory on over-the-counter trading platforms.
The reporting season is likely to continue to provide new impetus: Siemens, Munich Re and Merck, for example, will present their results on Thursday. At Siemens, in addition to the annual figures, the focus is on transforming itself into a more integrated technology group. The figures from network equipment manufacturer Cisco and chip supplier Applied Materials will follow after the US stock market closes.
On the economic side, the focus is primarily on Great Britain: For the third quarter, analysts expect economic growth of 0.7 percent compared to the previous quarter, after 0.5 percent in the spring. In the afternoon, the weekly initial jobless claims and sales of existing homes are due in the USA. The latter provide information about how rising interest rates are affecting the real estate market.
1 – Stock exchanges in New York: Dow Jones, S&P 500 and Nasdaq
After the dampening inflation figures from the previous day, the US stock exchanges only know one direction: upwards. A media report about the AI developer Anthropic and the figures from a data center operator also help.
The Dow Jones index of standard values closes half a percent higher at 52,486 points.
The broader S&P 500 rose 1.3 percent to 7,619 percent.
The index of the technology exchange Nasdaq gains over 1.6 percent and is at 25,466 points.
The Nasdaq 100, which tracks the 100 largest non-financial companies with the highest market capitalization, also gained almost 2.3 percent and reached 28,374 points in the evening.
2 – Stock exchanges in Asia
The ongoing leadership crisis at chip manufacturer Nvidia only briefly caused unrest in the Asian markets. Until the lunch break, the important indices in Asia were only slightly changed.
South Korea's Kospi rose 0.2 percent and Taiwanese stocks gained 0.5 percent.
Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1 percent lower, weighed down by stocks in Hong Kong.
In Tokyo, the 225-stock Nikkei index remained almost unchanged at 61,304 points and the broader Topix was 0.6 percent higher at 3,951 points.
The Shanghai Stock Exchange gained 0.2 percent to 3,688 positions. The index of major companies in Shanghai and Shenzhen rose 0.1 percent to 4,080 points.
3 – British Economy
The British statistics office ONS published its first estimate for economic growth in the third quarter early this morning. In the second quarter, gross domestic product in the United Kingdom increased by 0.5 percent compared to the previous quarter. Analysts now expected a growth rate of 0.7 percent for the period from July to September.
4 – Siemens numbers
Siemens will present quarterly results on Thursday. The company is in the middle of restructuring with the so-called “One Tech Company” program. Siemens boss Roland Busch wants to merge the business areas into a more integrated technology group. The share of the second most valuable company in the German leading index DAX has gained around eleven percent in value in the past twelve months.
5 – Further quarterly figures
In addition, other companies publish their latest financial results. From the Dax, these include the insurers Allianz and Munich Re as well as the pharmaceutical company Merck. In the USA, network equipment manufacturer Cisco and chip supplier Applied Materials, among others, are presenting figures.
6 – US real estate market
New figures for existing home sales in the USA will be published on Thursday. The real estate market in the United States is under pressure due to rising interest rates.
