DAX remains range-bound as investors sell both good and bad news
The DAX remains trapped around 25,000 as investors use both strong and weak earnings news to reduce risk, while elevated energy prices and today's ECB decision keep sentiment cautious.
written by
Andreas Lipkow
Chief Market Analyst
23 Jul 2026, 08:20
Good news is no longer enough
Although Alphabet exceeded market expectations with its quarterly results, the stock came under pressure in after-hours trading. As many investors had feared ahead of earnings season, "good" results are no longer good enough.
With valuations still elevated, market participants continue to use even positive earnings surprises as opportunities to lock in profits.
Tesla and ServiceNow show a divided earnings reaction
Tesla painted a different picture. The electric vehicle manufacturer disappointed with its latest earnings report, triggering the expected wave of selling.
The bright spot of the evening came from ServiceNow, which delivered stronger-than-expected results and saw its shares rally in after-hours trading. Ironically, investors had already reduced their exposure to the cloud software provider ahead of the release, putting the stock under pressure before the numbers were published.
Investors struggle with the earnings signal
Against the backdrop of demanding market valuations, investors are finding it increasingly difficult to make clear-cut investment decisions following corporate earnings releases. Asian markets also reflected this cautious mood.
Semiconductor and AI-related stocks posted modest gains, but overall trading activity remained subdued. At the same time, the ongoing conflict involving Iran and persistently elevated energy prices continue to reinforce a sense of paralysis among investors.
ECB decision and US data take focus
The earnings season continues today with results from Nestle, Roche, and Traton. Market participants will also closely watch the European Central Bank's policy decision.
While no change in interest rates is expected, attention will focus squarely on Christine Lagarde's press conference for clues about the ECB's inflation outlook and the future path of monetary policy. Later in the day, US labour market data and Eurozone consumer confidence figures will provide additional macroeconomic direction.
DAX remains locked around 25,000
Despite a busy news agenda, trading volumes are likely to remain constrained by the seasonal slowdown.
From a technical perspective, the DAX is expected to remain locked in a trading range between 24,900 and 25,150 points, with the 25,000-point level continuing to serve as the market's primary reference point.
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DAX moves closer to 25,000 as elevated oil prices continue to cap upside
The DAX is edging back towards 25,000 after positive leads from Asia and Wall Street, but Brent crude near $90 keeps inflation and growth concerns in focus ahead of earnings and the ECB meeting.
