The DAX is trying to hold its rebound rather than extend it
After yesterday's turnaround, the DAX looks set to start today's session close to its previous close, with the 24,300 area acting as an early reference point. The German source argues that this is less the start of a fresh impulse higher and more a pause, as traders weigh whether the market has enough support to build on the rebound.
That distinction matters because the index is no longer being driven by broad-based conviction. Instead, investors are becoming more selective again, which leaves the market looking stable on the surface but less dynamic underneath.
Middle East headlines are still driving the short-term mood
Investors have had to process another round of geopolitical headlines over the past 24 hours, especially around the Middle East. The postponement of a possible US strike on Iran helped stabilise sentiment and gave Asian equities some breathing room, but it did not remove the wider risk premium from markets.
Even in Japan, where GDP data came in better than expected, the improvement was not enough to stop profit-taking. That tells us investors are still willing to reduce exposure even when the macro news is not outright negative, which is usually a sign that positioning has become more cautious.
Profit-taking in semiconductors and AI stocks is weighing on momentum
The clearest pressure point remains the technology complex, particularly AI-related shares and the semiconductor names that helped drive global indices higher in recent weeks. The source notes that expectations around artificial intelligence have pushed parts of the market into overheated territory, as investors priced in a far-reaching productivity shift and stronger future earnings for the main beneficiaries.
