DAX faces a nervous trading session as Apple disappoints with cautious outlook

Investors remain extremely sensitive to quarterly earnings from major US technology companies, as the market reaction to Apple's latest results has once again demonstrated. While the company's performance in the past quarter was convincing, its more cautious outlook for margin development during the crucial holiday shopping season left investors disappointed. Elevated semiconductor prices, in particular, could weigh on profitability. Apple shares subsequently came under pressure in after-hours US trading, dampening sentiment across Asian equity markets as well.

The message is clear: even outstanding earnings are no longer enough if the outlook fails to impress. Palantir provided a welcome counterbalance with its quarterly results. The artificial intelligence (AI) specialist exceeded expectations and was rewarded with share price gains in after-hours trading.

Oil prices and US midterms add uncertainty

Hopes of a diplomatic agreement between the US and Iran are also providing some support. The prospect of easing tensions in the Middle East had temporarily pushed crude oil prices sharply lower. However, those losses had already been largely reversed in early trading. The situation remains highly uncertain, with energy markets reacting nervously to every new development.

In Germany, Bayer's quarterly results will be among the key corporate events attracting attention today. However, the main focus will be on the US midterm elections. Their outcome could shift the balance of power in Congress and consequently affect the US administration's ability to pursue its economic policy agenda.

AMD and Shopify face an earnings test

Meanwhile, the technology earnings season continues to gather momentum. Advanced Micro Devices (AMD) and Shopify are two more companies in the spotlight, with their results and outlooks potentially providing important insights into demand for semiconductors, AI infrastructure and digital services. Following the contrasting market reactions to Apple and Palantir, investors are likely to remain particularly unforgiving of any disappointments.

DAX trading range

The DAX therefore faces a potentially volatile trading session. With disappointment over Apple's outlook, renewed AI optimism following Palantir's results and political uncertainty surrounding the US midterm elections pulling sentiment in different directions, the market lacks a clear directional catalyst. Germany's benchmark index is initially expected to trade within a range of 25,500 to 25,850 points.