Weekly Outlook: New Risks for Tech Stocks

Technical analysts are already seeing medium-term sell signals in the U.S. markets. Here in Germany, several DAX companies are set to report their earnings this week.

November 9, 2026. FRANKFURT (Deutsche Börse). U.S. stock markets ended the past week with significant losses. The Nasdaq 100 (US6311011026) fell 4.9 percent, while the S&P 500 (US78378X1072) dropped 2.7 percent. The DAX (DE0008469008), on the other hand, closed virtually unchanged, while the MDAX (DE0008467416) actually gained 0.6 percent. The STOXX Europe 600 (EU0009658202) rose 0.2 percent. On Monday morning, the DAX stood at 25,730 points, down from 25,820 points at Friday’s close.

The clear outcome of the U.S. midterm elections initially sparked relief in the markets midweek. However, as early as Thursday, massive sell-offs began, particularly in semiconductor and AI stocks. Berndt Fernow of LBBW attributes this to the prospect of stricter regulations for data centers. The Democrats have won a majority in both chambers of Congress and will also hold the governorship in key states going forward. Fernow therefore expects restrictions on the expansion of AI infrastructure.

AI Investments and Their Financing

Added to this are doubts about the profitability of these billion-dollar investments. Henning Oligmüller of LBBW points to concerns that data centers will not generate enough revenue in time to service their operators’ debt. High interest rates also make it difficult to value companies whose expected profits lie far in the future. According to LBBW, the six largest technology stocks account for about one-third of U.S. market capitalization.

Andreas Hürkamp of Commerzbank, on the other hand, points to the now lower valuation of the Nasdaq 100. According to his calculations, its price-to-earnings ratio has fallen to 18, well below the long-term average of 23. Expected corporate earnings have continued their upward trend. Hürkamp interprets the P/E ratio as an indication that many potential political headwinds are already priced in.

European Earnings Exceed Expectations

In Europe, earnings season reaches its peak this week: In Germany alone, 12 of the 40 DAX companies are reporting results, including Infineon, Siemens Energy, E.ON, RWE, Allianz, and Siemens. According to an analysis by Deutsche Bank, roughly three-quarters of the quarterly reports from the STOXX Europe 600 have been published. Profits rose 27 percent year-over-year and were 8 percent above consensus estimates overall. Two-thirds of the companies exceeded profit expectations.

The outlooks were also largely positive: 35 percent of the companies surveyed raised their forecasts, while 11 percent lowered them. However, there are significant differences between sectors. While profits at European technology companies rose by 78 percent, automakers posted a 49 percent decline. Excluding the energy sector, profit growth in the STOXX Europe 600 still stood at 12 percent.

U.S. Indices Show Technical Warning Signs

The recent price declines have also altered the long-term chart patterns. According to Marcel Mußler, both the Nasdaq 100 and the S&P 500 have broken their uptrends, which had been in place since April 2025. The technical analyst interprets this as medium-term sell signals. The weakness is particularly pronounced in the SOX semiconductor index, which had already lost its long-term uptrend at the end of October. Friday’s slight stabilization did little to change this. Mußler continues to see significant correction risks, but also points to key support levels at which the U.S. indices could stabilize for the time being.

Key Economic and Business Dates for the Week

Monday, November 9

10:30 a.m. Eurozone: Sentix Investor Confidence. Economists generally expect the sentiment index to decline from 2.7 to 2.0 points in November. Helaba is significantly more optimistic and forecasts a rise to 5.0 points.

Tuesday, November 10

2:30 p.m. U.S.: Inflation data. Consumer prices are expected to have risen by 0.3 percent in October compared with the previous month, following a 0.6 percent increase in September. Excluding energy and food, analysts on average expect a 0.2 percent increase, down from 0.3 percent previously. According to Deka’s assessment, even slightly weaker price growth would not yet signal all-clear for the Federal Reserve. Year-over-year rates will not be published due to a lack of comparable data from October 2025.

Wednesday, November 11

8:00 a.m. Germany: Consumer prices. The final figures for October are expected to confirm the preliminary inflation rate of 2.8 percent year-over-year. Compared with September, prices fell by 0.2 percent, according to the initial estimate.

Thursday, November 12

4:00 p.m. U.S.: Existing-home sales. LBBW expects annualized sales for October to decline from 3.99 million to 3.90 million. Rising interest rates are likely to have slowed the housing market.

Friday, November 13

11:00 a.m. Eurozone: GDP, second estimate. For the third quarter, the preliminary figure of 0.4 percent economic growth compared with the previous quarter is expected to be confirmed. The unusually strong growth in Ireland of 5.5 percent was primarily due to one-time effects from international corporations.

2:30 p.m. U.S.: Producer prices. Following the sharp 1.3 percent increase in September, economists expect a 0.4 percent rise in October compared with the previous month. Excluding energy and food, an increase of 0.3 percent is expected, down from 0.7 percent previously. Here, too, no year-over-year rates will be published due to a lack of comparable data.