DAX seen opening around 26,400 as investors look past AMD and SpaceX earnings
The DAX is set to extend its record-breaking rally near 26,400 as investors continue to favour technology stocks, looking past disappointing AMD and SpaceX earnings while rewarding stronger guidance from Fresenius.
Chief Market Analyst
DAX set to extend record rally
The DAX is set to extend its record-breaking rally, with the German benchmark expected to open around 26,400 points.
Positive leads from both Asian markets and Wall Street continue to underpin sentiment. Despite disappointing earnings from US chipmaker AMD, investors remain eager buyers of technology stocks, leaving the DAX on course to continue its upward march.
Palantir overshadows AMD and SpaceX disappointment
Another closely watched newcomer, SpaceX, also failed to impress with its latest financial results.
However, these disappointments have been overshadowed by the strong earnings report from Palantir, which reinforced investors' conviction that the artificial intelligence investment cycle remains intact and that the monetisation of substantial AI spending is only just beginning.
Infineon under pressure after AMD weakness
The earnings season remains in full swing. Within the DAX, Fresenius, Infineon and DHL Group have already reported quarterly results.
Infineon came under pressure following the weakness in rival AMD, while its own earnings release failed to provide a meaningful positive catalyst.
Fresenius guidance rewarded by investors
Fresenius, by contrast, delivered a strong set of results that was well received by investors.
Core earnings per share increased by 14%, and management now expects EPS growth of 10-15% going forward. In addition, the company raised its outlook for 2026, precisely the type of forward guidance investors are rewarding in the current market environment. As a result, Fresenius is among the strongest performers in pre-market trading.
PMIs and ADP employment data in focus
Attention will now turn to a series of Purchasing Managers' Indices (PMIs) from across Europe, as well as the ADP employment report from the United States, both of which could provide fresh direction for markets.
DAX expected to trade between 26,200 and 26,500
From a technical perspective, the DAX is expected to trade within a range of 26,200 to 26,500 points during today's session.
DAX extends record rally as Palantir reignites AI optimism
The DAX has extended its record rally above 26,000 after Palantir's stronger-than-expected results revived optimism around AI-related stocks, while investors continue to watch earnings, US data and Iran-related risks.
