- Dax is collapsing, Asian stock markets are roaring down.
In the face of a sell-off on Asian stock markets, the Dax continued its recent slide in price. The German benchmark index plummeted by three percent on Monday morning to 17,127.22 points, reaching the level of late February. At the same time, the stock market barometer fell below the closely watched 200-day moving average, which provides indications of the longer-term trend on the stock market.
Investors reacted primarily to the sharp decline in stock prices on the Asian exchanges. Concerns about a potential hard landing of the economy in the USA spooked investors there. Additionally, technology stocks suffered from a report that chipmaker Nvidia is delaying the launch of new AI chips due to alleged design flaws. Nvidia had recently been the driving force behind the general stock market rally, benefiting greatly from the boom theme of artificial intelligence (AI).
The news of Nvidia's delayed AI chip launch further contributed to the downtrend, as it affected technology stocks and compounded the losses from the sell-off on Asian markets. The price of technology stocks slipped significantly due to these developments.
