Nasdaq 100 and DAX Outlook: Global Stocks Likely to Stay Under Pressure
Published on Mon, 19 Oct 2026 by Fawad Razaqzada
Market Overview
Global stock markets have begun the week with uncertainty, particularly in Europe where major indices like the CAC 40 and IBEX are experiencing significant declines. Political and fiscal concerns in France are contributing to this negative sentiment. The German DAX index is also down, while US indices, after a brief recovery, are showing signs of weakness with Dow futures turning negative.
DAX Outlook: European Markets Under Pressure
European equities are facing considerable pressure, with major indices down by around 1% or more. The situation in France is particularly concerning due to violent protests that have raised uncertainties regarding the government's ability to implement necessary fiscal reforms amidst growing public discontent. The spread between French and German 10-year government bond yields has widened, indicating increased risk perception among investors.
Nasdaq 100 Outlook: AI Trade Faces Growing Scrutiny
The technology sector, particularly the Nasdaq 100, is under scrutiny as pressures mount from rising Treasury yields and inflation concerns. Investors are questioning the sustainability of the AI investment boom, especially in light of recent inflation data that has revived expectations for further Federal Reserve rate hikes. The cost of insuring against defaults among US tech companies has also surged, signaling stress in credit markets.
Technical Analysis
Nasdaq 100
The Nasdaq 100 has broken below its bearish trend line, indicating a potential bearish outlook. Current resistance is around the 29,600 level, while support is found between 29,000 and 29,240. A break below this support could lead to a larger correction.
DAX
The DAX is probing support near the 25,200 zone, with a potential break exposing the 200-day average near 24,800-24,900. Key resistance levels are identified between 25,500 and 25,800.