DAX today: Weak start to the week puts 25,300 in focus

DAX comes under selling pressure as 25,300 returns to focus

The DAX has made a weak start to the new week. Heavy selling emerged in the first hour of trading. By mid-morning, losses amounted to around 240 points, bringing the 25,300 level back into focus. Sellers took control early, putting the recent recovery to an immediate test.

DAX market breadth: Most stocks trade above key moving averages

At last week’s close, the underlying picture had looked reasonably solid: 67% of the DAX stocks analysed were trading above their 200-day moving average, while 56% were above their 50-day average. The recovery therefore had support from a majority of index constituents. Monday’s weak opening now provides a stress test: the key question is whether selling spreads during the session or buyers return at lower levels.

DAX market breadth as of 16 October 2026: 67% of the stocks analysed were above their 200-day moving average and 56% above their 50-day average.

AI and defence stocks: A sharp divide between winners and losers

Last week’s performance highlights the different forces at work across equity markets. Of the 1,114 stocks analysed, 811 advanced — almost 73%. At the same time, some AI infrastructure companies lost around a quarter of their market value. Rheinmetall gained 16.5%, while Ciena fell around 26% and CoreWeave lost just over 25%. These substantial differences suggest a shift in investor favourites. Expectations appear to be facing closer scrutiny, particularly among some of the companies previously seen as leading beneficiaries of the AI boom.

Nasdaq market breadth remains weak ahead of earnings

US technology stocks enter earnings week on the back foot. At Friday’s close, just 40% of the Nasdaq 100 stocks analysed were trading above their 50-day moving average. Short-term weakness therefore extends across a substantial part of the index. Positive company updates would need to support a broader recovery to deliver a lasting improvement in the technical picture.

Netflix, Tesla and Meta earnings set up the next sentiment test

Netflix Inc (24 Hours) reports on Tuesday, followed by Tesla Motors Inc (24 Hours)and Meta on Wednesday. In my view, the focus will be on margins, investment plans and when heavy spending will translate into tangible earnings. This earnings season needs to show how much profit stands behind the big growth promises. For the DAX, the immediate priority is to regain a foothold around 25,300 and absorb the early selling pressure.