The DAX steadied on Monday, trading around 26,134 points by midday, roughly flat after recouping modest losses from the previous session. The index remained above the 26,000 mark and held above its 21-day moving average, which it briefly tested earlier in the day. The stabilization follows a two-day rebound on Friday, though a sustained climb back toward its record close of 26,574 points appears challenging given the week’s lineup of pivotal events.
Investors adopted a cautious stance ahead of two major catalysts: Nvidia’s quarterly earnings release on Wednesday after U.S. markets close and a speech by incoming Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Friday. Warsh’s remarks are expected to focus on the central bank’s evolving inflation and bond-market concerns, which could influence U.S. interest rates—particularly relevant for the capital-intensive artificial intelligence sector. Wednesday’s U.S. inflation data will also be closely watched by policymakers, according to market commentary.
"Investors aren’t leaning too far out on the risk curve before Nvidia reports and the new Fed chair signals whether inflation or the bond market is the bigger concern," said Josh Gilbert, market analyst at eToro. Andreas Lipkow, chief market analyst at CMC Markets, noted that German investors appeared largely unfazed by geopolitical developments in Iran and fresh U.S. tariffs on Canadian goods.
The MDax of mid-cap stocks rose 0.25% to 32,190 points, while the Euro Stoxx 50 slipped 0.1%. Global equity markets offered little support: U.S. futures pointed to declines after Friday’s gains, and Asian benchmarks were broadly weaker, with South Korea’s tech-heavy Kospi index leading losses.
In Frankfurt, semiconductor and AI-related shares came under pressure as profit-taking spread across the sector. Infineon and Elmos each fell 0.9% and 0.6%, respectively, while Aixtron and Suss MicroTec declined 0.4% and 1.4%. Samsung’s shares also retreated despite announcing dividend payouts and share buybacks, and SK Hynix followed suit with a decline. The sector’s pullback mirrored weakness in Asian markets, where Kia and Hyundai shares also declined.
Automakers in the DAX were among the day’s laggards, with Volkswagen leading declines at minus 2%, followed by BMW at 1.2% and Mercedes-Benz at 0.8%. Volkswagen Group CEO Oliver Blume warned employees of sweeping restructuring measures amid a global automotive downturn. "The next few weeks are critical: everyone must pull together," Blume told Bild am Sonntag. "We have launched the largest transformation plan in Volkswagen’s history."
Materials and commodity-linked stocks bucked the trend, extending Friday’s gains. ThyssenKrupp advanced 1.8%, Aurubis rose 1.5%, while Brenntag and Wacker Chemie gained 1.4% and 1.1%, respectively.
