DAX Outlook: Stock Markets Resume Higher
By Fawad Razaqzada, Market Analyst
Date: February 25, 2026
Market Overview
European markets have resumed their upward trajectory, influenced by positive movements in Asia. The Nikkei 225 reached a new record high, buoyed by exporters benefiting from a weaker yen. This follows comments from Japanese Prime Minister Takaichi expressing concerns to Bank of Japan Governor Ueda regarding further interest rate hikes. The German DAX index also saw gains, while the FTSE 100 notably hit new highs, nearing the 10,800 mark. The UK index has now risen for five consecutive weeks, driven by strong earnings from HSBC and favorable performance from mining companies like Fresnillo, which have benefited from rising metal prices.
Market Sentiment
Overall market sentiment has remained positive since the US market opened, with recent anxieties surrounding AI disruptions alleviated by Anthropic's announcement of new partnerships. The market showed little reaction to President Trump's State of the Union address, which focused on the economy without introducing significant new policies. Oil prices dipped slightly amid hopes for progress in Iran's nuclear negotiations, with Tehran indicating readiness to engage diplomatically with Washington. Additionally, Bitcoin's rebound contributed to a risk-on sentiment, further supporting the DAX outlook, especially with tech giants like SAP included in the index.
Technical Analysis of the DAX
From a technical standpoint, the DAX index appears bullish. It has maintained its position above a critical support zone over the past few days, consolidating its recent gains steadily. The key support area lies between 24,500 and 24,770, which is crucial for maintaining a constructive near-term outlook. The DAX is also trading above its rising 21-day exponential moving average and significantly above the 200-day moving average, reinforcing a positive technical backdrop.
Current levels to monitor include a near-term support area between 25,000 and 24,985, which has held firm, while resistance is identified around 25,200. A decisive break above this resistance could lead to a push towards the all-time high of 25,512, established in early January.
US Market Futures and Tech Sector Focus
US equity futures are also trending higher following a rebound from the previous day. Trump's address, which defended the US economy, did not introduce major new policies. The tech sector is particularly in focus, with Nvidia's upcoming earnings expected to influence market direction. Following a recovery in stocks, driven by positive news from Anthropic, companies in the consumer discretionary and technology sectors have seen significant gains. Nvidia's performance will be critical, as it needs to exceed expectations and provide strong guidance to stabilize market concerns regarding AI valuations.