Market report: Tech sell-off weighs on investor sentiment

At the end of the week, the stock markets are experiencing slight turbulence: Tech stocks are falling far behind on Wall Street, and geopolitical concerns are also growing. Will the DAX defend itself against further price losses?

Market report Too many construction sites DAX investors avoid the risk As of: October 23, 2026 • 6:38 p.m

High oil prices, ongoing concerns about France's public finances and ever-new concerns about artificial intelligence. Too many problems for investors at the same time, the DAX fell.

The DAX entered the weekend with a loss of 0.75 percent to 25,181 points. Concerns about the technology sector, negative corporate balance sheets and a rise in oil prices had already weighed on the market yesterday. This trend continued today. In a weekly comparison, the German leading index has lost around 1.7 percent.

In addition, investors will probably have to deal with concerns about France's public finances for a long time - always accompanied by the anxious feeling that a new euro crisis could be looming.

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Yesterday, the US tech giant Meta in particular had to give up despite good quarterly figures - investors are wondering when the billions in investments will pay off. Meta plans to invest $135 billion this year.

“There is definitely a healthy skepticism about AI right now,” said Brendon Dashiell, portfolio manager at Bogart Wealth. The already high valuations made the sector stocks vulnerable. “Any small setback in the market can therefore lead to a sharp fall in the price of these stocks.”

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Yesterday, Saudi Aramco ordered the evacuation of its headquarters in Dhahran, Saudi Arabia, according to a Reuters report. The reason for this is the escalating conflict between the world's largest crude oil exporter and the Iran-backed Houthi rebels in Yemen.

"Markets are increasingly concerned about a renewed escalation in the Persian Gulf - a scenario that could threaten previously robust oil flows," wrote experts at major Dutch bank ING. A barrel of North Sea Brent recently costs around $117 - so there is still no sign of relaxation.

The bond markets are currently developing very differently. While German and US government bond yields fell this week, the rise in France continued.

At the end of the week, ten-year federal bonds yielded 3.36 percent after 3.41 percent a week ago. At the beginning of the week it was even up to 3.47 percent. The yield on ten-year US Treasuries fell from 5.09 to 4.97 percent over the week. “The fear of a correction on the stock markets is driving investors into safe government bonds and depressing yields,” explains Tim Oechsner from Steubing AG.

French government bonds with the same term now yield around 5.10 percent. Yields were last this high in May 2002. The reasons include high national debt, budget problems and political instability.

Many investors are also likely to take a look into the near future: in the coming week, the central banks will come back into focus, writes Robert Greil, chief strategist at private bank Merck Finck, in his weekly outlook.

"The US Federal Reserve (Fed) is meeting just six days before the US midterm elections. The continuing rise in US inflation actually clearly speaks in favor of a key interest rate increase. Nevertheless, the Fed is likely to hold back shortly before the elections, as it has usually done historically."

Greil does not expect any interest rate changes at either the Fed or the ECB. However, the economist believes that a further increase in December is still likely. The Fed only raised its key interest rate by 0.25 percent in September.

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The disappointment over the quarterly report from the French engine manufacturer Safran weighed heavily on the entire industry on Friday. Added to this are the high oil prices, which are depressing prices.

French securities fell by ten percent to their lowest level since May. In their wake, Rolls-Royce, Melrose and DAX member MTU also lost significantly. At MTU, losses were almost five percent and the stock was at the bottom of the DAX.

This topic in the program: tagesschau.de | Stock market 5:45 p.m.: Daily conclusion with DAX closing | 10/23/26 | 5:53 p.m