DAX holds firm at elevated levels as SK Hynix outlook disappoints
The DAX is holding firm at elevated levels despite renewed Middle East tensions, higher Brent crude prices and continued selling pressure across Asian semiconductor stocks after disappointing guidance from SK Hynix.
written by
Andreas Lipkow
Chief Market Analyst
29 Jul 2026, 07:30
Middle East tensions lift Brent crude
The ceasefire in Iran appears to have come to an end, with energy markets already reacting to renewed military tensions involving Iran, Saudi Arabia and the United States.
According to media reports, several attacks have targeted US military bases in the region, underlining the increasingly volatile and unpredictable nature of the conflict. Oil prices responded immediately, with Brent crude climbing back above USD 86 per barrel.
Asian technology stocks extend their correction
Asian equity markets reacted swiftly to the renewed geopolitical tensions. Already under pressure, technology stocks extended their sharp correction, with the deteriorating situation in the Middle East accelerating the sell-off.
Investors continue to reduce exposure to semiconductor companies amid growing doubts over the sustainability of the AI investment cycle. The ever-rising capital expenditure required across the industry has prompted investors to reassess valuations and lock in a portion of the substantial gains accumulated over recent months.
SK Hynix guidance weighs on semiconductor sentiment
Additional pressure came from SK Hynix, whose full-year guidance fell short of market expectations, further undermining sentiment across the semiconductor sector.
The stock closed more than 11% lower after having fallen by almost 20% at its intraday low.
Fed and big tech earnings dominate the agenda
Today's trading session is expected to be particularly eventful. In Europe, Deutsche Bank is scheduled to report quarterly results, while after the US market closes, investors will closely scrutinise earnings and guidance from Microsoft and Meta, two of the key beneficiaries of the artificial intelligence investment theme.
In addition, the Federal Reserve's interest rate decision will be the central macroeconomic event of the day.
DAX faces resistance above 25,500
Against this backdrop, the DAX may struggle to establish a sustained move above the 25,500-point level.
From a technical perspective, the index is expected to trade within a range of 25,000 to 25,450 points during today's session.
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DAX holds firm despite tech sell-off as Japan and South Korea are hit hard
The DAX is proving resilient despite a sharp sell-off in Asian technology stocks, with limited large-cap tech exposure helping Frankfurt absorb renewed profit-taking in AI and semiconductor names.
