The DAX Index Closes 1.37% Lower

The DAX 40 fell around 1% toward 25,200 on Wednesday, extending losses from the prior day, as escalating tensions in the Middle East dampened risk appetite. The United States launched multiple strikes against Iran and reinstated sanctions targeting its oil sector, following alleged Iranian attacks on three vessels in the Strait of Hormuz. Oil prices pushed higher, raising concerns over inflation and higher interest rates ahead of the Fed's June meeting minutes this evening. At the same time, investors continued reducing exposure to semiconductor and AI-related stocks amid increasing unease over elevated valuations. Selling was widespread across sectors, sparing only utilities. Among individual stocks, Vonovia (-3.2%), Rheinmetall (-3.1%), MTU Aero Engines (-2.5%), Deutsche Bank (-2.5%), and SAP (-2.2%) posted the biggest losses. Lufthansa dropped 4% after Cititgroup cut its rating to "sell" from "neutral". By contrast, E.ON, RWE and Scout24 advanced the most, adding between 0.8%-1.3%.

The DAX Index is dropping 240 points. Leading the losses are Vonovia (-3.04%), MTU Aero Engines AG (-2.96%) and Rheinmetall (-2.89%). Top gainers were Scout24 (1.29%), E.ON (0.97%) and RWE (0.85%).

The DAX 40 closed about 1.4% lower at 25,465 on Tuesday, snapping a five-day advance and underperforming its European peers, pressured by tech worries and renewed hostilities in the Strait of Hormuz. Chip stocks came under heavy pressure after Samsung’s outlook sparked AI jitters, overshadowing a strong jump in operating profit. Infineon Technologies plunged 7.9%, while Siemens Energy slid 7.7% after a Barclays downgrade, as concerns grew that the stock had priced in an unsustainably strong long-term boom. Companies benefiting from data centers, such as Hochtief (-5.3%) and Siemens (-3.9%), also fell. Energy-intensive industrial companies such as Airbus, Rheinmetall, and MTU Aero Engines fell more than 2% as oil prices climbed after attacks on commercial shipping near the Strait of Hormuz. On the upside, Beirsdorf (3.4%), SAP (3%) and Fresenius Medical Care (2.7%) posted the biggest gains.