DAX Caught Between Rheinmetall's 20% Plunge and Tech Jitters as Micron Results Loom
25.06.2026 - 02:44:58 | boerse-global.de
Frankfurt's benchmark index ended Wednesday with a 0.6% loss at 24,740 points, but the driving forces behind the session were far from uniform. While a tailwind from falling oil prices and a firm Wall Street ordinarily would have lifted German equities, two separate shocks — a spectacular collapse in defence giant Rheinmetall and pre-earnings anxiety in the semiconductor space — overwhelmed any positive cues.
The oil market offered rare relief: Brent crude tumbled roughly 3.5% to $77.59 a barrel, its lowest since the outbreak of the Middle East conflict, on progress in US-Iran talks. Across the Atlantic, the Dow gained 0.9%, while the S&P 500 and the Nasdaq each rose 0.6%. Even the Ifo Institute’s June business climate index edged higher. None of that was enough to shift the DAX's mood.
Defence rout dominates
Rheinmetall was the day's standout story, shedding as much as 20.3% in intraday trade before closing 18.7% lower. The trigger came from Berlin: reports that the government plans to scrap the F126 frigate programme, potentially ending construction of Germany's largest warship since World War II. The sell-off spread across the defence sector — Hensoldt gave up 3.3% and Renk dropped 8.1% — but Rheinmetall's sheer weight in the index was the main drag. Siemens Energy, another recent high-flyer, also extended its slide, losing another 2%.
On the positive side, consumer stocks offered some ballast. adidas and Henkel each rose roughly 2%, helped by adidas’s continuation of its €1 billion buyback programme with the second tranche.
Should investors sell immediately? Or is it worth buying DAX?
Tech fears intensify ahead of Micron
While the defence shock was a one-off event, the broader technology sell-off reflected deeper unease about the sustainability of the artificial-intelligence spending cycle. Investor Dan Niles publicly trimmed his semiconductor holdings, warning of a near-term correction in AI-related trades. The central question, he argued, is whether hyperscalers can generate adequate returns on their massive infrastructure outlays.
The anxiety played out vividly in Asia. South Korea’s Samsung Electronics and SK Hynix both plunged more than 12% after regulators warned against leveraged chip ETFs. On Xetra, Infineon closed at €81.56 — steady for now but firmly on watch.
Analyst Andreas Lipkow of CMC Markets described the sector as trapped in a classic "pig cycle", where hard reversals arrive without warning. Thomas Altmann of QC Partners put it more starkly: "The fear of a sudden end to the rally is there. But many are also afraid of leaving the party too early."
DAX at a turning point? This analysis reveals what investors need to know now.
Technicals and the Micron pivot
Chart-wise, the DAX remains just above its 50-day moving average of 24,575 points and its 200-day average of 24,266. Both signals are still bullish. Resistance sits at 25,181 points — the June 19 high — and above that the January all-time high of 25,508. On the downside, Wednesday's intraday low at 24,723 forms the first support. If that breaks, the June 10 trough at 24,038 comes into play.
All eyes now turn to Micron Technology, which reported fiscal third-quarter results after Wednesday's US close. The consensus calls for revenue of around $34.66 billion and earnings per share of roughly $19.95 — exceptionally high expectations. The memory-chip maker has become a bellwether for the entire AI infrastructure thesis. A beat could restore confidence and pull the DAX back above the psychologically important 25,000 level. A miss, as the recent Broadcom earnings shock demonstrated, risks triggering a multi-day sell-off across the semiconductor space and spilling directly into Thursday's European open.
Ad
DAX Stock: New Analysis - 25 June
Fresh DAX information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
