The German DAX slipped 0.14% to 26,091.33 points on Wednesday, capping a third consecutive session of losses as investors remained unsettled by rising bond yields and geopolitical risks in the Middle East. The index briefly tested but did not breach the 26,000-point threshold it first crossed in early August.
The Euro Stoxx 50 fell 0.4%, while the MDax edged down 0.05% to 31,822.47. Switzerland’s SMI and the UK’s FTSE 100 ended higher, and the Dow Jones Industrial Average in New York traded in positive territory.
Semiconductor stocks continued to face pressure amid elevated bond yields and concerns over the sustainability of AI investment plans in a higher financing cost environment. Landesbank Baden-Württemberg (LBBW) cited rising U.S. Treasury yields as the catalyst for ongoing volatility in the sector. The U.S. Treasury’s indication of potential market support failed to allay investor anxiety.
Infineon led losses in the DAX, dropping 4% to approach its lowest level since late July, when tech sector turbulence had previously flared. In Asia, investor unease around SoftBank’s reported plans to issue new bonds to fund AI ambitions added to sector headwinds.
Efforts to stabilize the market proved uneven. SK Hynix’s announcement of a large share buyback program did little to ease sentiment, while a deal between Google and Marvell Technology provided mixed signals—boosting Marvell but weighing on Broadcom, a longtime Google supplier.
The broader chip sector’s drag on the DAX was partially offset by gains in other areas. SAP rose 1.9%, extending its recovery to the highest level since January, as investors reassessed long-standing concerns about potential AI-related disruptions. Merck KGaA advanced 1.2% after U.S. peers Merck & Co and Moderna reported positive results from a combined mRNA skin cancer treatment.
In the SDax, Heidelberger Druck surged 2.6% despite a weak start to the year, as the machinery maker reaffirmed its full-year guidance. Redcare Pharmacy’s shares fell 1.3% even as DocMorris lifted its revenue and profit guidance, while Redcare’s Swiss-listed rival gained nearly 4%.
Renk’s shares initially rose on takeover speculation fueled by a JPMorgan note but faded later in the session amid a mixed defense sector backdrop. Rheinmetall, Germany’s largest defense contractor, declined nearly 3% in the DAX.
The session underscored the market’s sensitivity to rate expectations and sector-specific developments, with chip stocks remaining a focal point amid broader macro uncertainty.
