The DAX has lost its grip on 24,000
The DAX looks set to begin the final session of the shortened trading week under renewed pressure after failing to hold the 24,000 level. Risk appetite has weakened again, and the market now appears to be reassessing whether the latest rally had moved too far ahead of the underlying macro and earnings backdrop.
Oil and mixed US tech earnings are driving the latest risk-off move
Two factors are dominating sentiment. First, oil prices have climbed back to their highest levels since 2022, with Brent crude trading around $120 a barrel and adding fresh inflation concerns. Second, results from Alphabet, Amazon, Microsoft, Meta and Qualcomm have produced a mixed picture that has not been strong enough to fully satisfy investors.
That matters because large US technology stocks were a key pillar of the recent advance on Wall Street. If those names no longer provide a clear upside impulse, broader equity markets lose one of their most important sources of support.
The Fed did little to settle the rate debate
The latest signals from the Federal Reserve also failed to offer investors much clarity. Jerome Powell acknowledged inflation risks while also stressing the resilience of the US economy, leaving markets without a decisive steer on whether policy easing is still the more likely next step.
That uncertainty is enough to keep traders cautious, especially when higher energy prices are once again threatening to complicate the inflation outlook.
