European Tech Stocks Plunge on AI Valuation Correction and Middle East Tensions

The news headline indicates a sharp decline in European technology stocks due to an AI valuation correction and geopolitical tensions. SAP stock shows a technically weak outlook, with RSI14 below 40 and MACD trading in negative territory below its signal line. The price is trading below both the 20-day and 50-day moving averages, supporting a short-term bearish trend. Despite a slight uptick in the last 24 hours, overall market sentiment and technical indicators suggest potential for further downside movement. Therefore, the downtrend is expected to continue in the short term.

The news headline indicates a sharp decline in European technology stocks due to an AI valuation correction and geopolitical tensions. ASML, being a major player in the European tech sector, could be directly affected by this downturn. Although the RSI stands at 61.75, indicating a neutral zone, the MACD being above the signal line suggests short-term upward potential. However, the negative sentiment generated by the news may limit the impact of these technical signals. The last closing price was 1759.62, which is above the SMA20 and SMA50, but with the bearish news, these levels face the risk of being tested.

The DAX index is under selling pressure due to an AI valuation correction and geopolitical risks. Technical indicators confirm the weakness: the RSI is approaching oversold territory at 37.6, while the MACD is below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages. In the short term, the downtrend is likely to continue, although some buying on dips may occur due to oversold conditions.

NDX has fallen 3.6% in the last 24 hours, dropping to 29,562. While the RSI at 39.9 approaches oversold territory, the MACD line remains below the signal line and in negative territory, indicating sustained bearish momentum. The price is trading below both the 20-day and 50-day moving averages (29,950 and 30,247, respectively), pointing to a weak short-term trend. Sharp declines in European technology stocks and heightened Middle East tensions could further pressure NDX by dampening risk appetite. Although the RSI nearing oversold levels raises the possibility of a short-term bounce, current indicators suggest the downtrend may persist for some time.