DAX Breaks 25,000 Intraday on Bayer Ruling, Then Yields as Inflation Data Bites

The German DAX briefly breached 25,000 points after a US Supreme Court ruling boosted Bayer, but hotter-than-expected PCE inflation revived rate-hike fears, capping gains.

The German blue-chip index burst through the psychologically critical 25,000 barrier during Thursday’s session, powered by a landmark US Supreme Court decision that removed the threat of thousands of glyphosate lawsuits against Bayer. The rally, however, ran out of steam after fresh inflation figures from Washington poured cold water on hopes for imminent rate cuts.

Bayer’s stock exploded 19% higher to €47.12 after the high court ruled that federal law preempts state-level claims in the long-running glyphosate dispute. Analysts characterized the judgment as a decisive victory for the pharmaceutical and agrochemical group. The surge lifted the entire index, pushing the DAX as high as 25,000 points intraday for the first time ever.

But the euphoria faded in afternoon trading after the US personal consumption expenditures (PCE) deflator for May came in hotter than expected at 4.1%, reviving fears that the Federal Reserve will keep interest rates elevated for longer. The DAX retreated from its peak and closed with a gain of 1.03% at 24,994 points, leaving the all-time high within striking distance — just 2% away.

The session capped a volatile week for Frankfurt. Just a day earlier, the index had been recovering from a sharp selloff triggered by the surprise cancellation of a frigate contract that sent Rheinmetall shares sliding. On that recovery day, the DAX added 0.79% to 24,935.38 points, though trading volume collapsed to just 18 million shares — an 80% drop from the weekly average, underscoring the tentative nature of the rebound.

Chips and cars provide the tailwind

Infineon powered the index on both days. The chipmaker gained 2.25% in the Bayer-driven session, building on a 5% surge the previous day, when strong quarterly results from US competitor Micron reignited appetite for semiconductor stocks. Volkswagen also lent support after finalizing the sale of a 51% stake in its heavy-engine subsidiary Everllence to Bain Capital for €7.4 billion. The proceeds provide the automaker with additional financial flexibility as it navigates the transition to electric vehicles.

Defensive drag and SAP headwinds

Not all constituents shared in the advance. Fresenius Medical Care fell 3.16% in the later session, extending a more than 4% drop from the prior day, after a disappointing proposal for US dialysis reimbursement rates spooked investors. SAP slipped 1.68% to €132.60, weighed down by lingering doubts about its artificial intelligence strategy. Rheinmetall continued to languish as the aftermath of the defense contract cancellation kept the stock under pressure.

Technical picture brightens

Despite the intraday reversal, the DAX remains comfortably above its 50-day moving average, which sits at 24,592 points. The relative strength index (RSI) at 54 signals a neutral market — neither overbought nor oversold. The 25,000 threshold now acts as the next major resistance, while the previous day’s close at 24,740 provides a support floor. A friendly tailwind from Wall Street, where the S&P 500 opened firmer, and a dip in US 10-year Treasury yields to 4.37% helped keep the broader mood constructive.

For now, the index is caught between euphoria over a single legal victory and the sobering reality of persistent inflation. The path through 25,000 remains open, but the journey will require more than just one corporate catalyst.