DAX Misses the Mark at 25,000: Tech Woe, Strait Tensions and a Probe Rattle Frankfurt

DAX fell 1.29% to 24,671, missing 25,000 amid tech sell-off and Strait of Hormuz attack. Defensive stocks SAP rose; Rheinmetall dropped 20% for the week.

The main event investors had been eyeing all week—the 25,000-point mark—slipped out of reach on Friday as the DAX tumbled 1.29 percent to close at 24,671. A global sell-off in technology stocks collided with geopolitical jitters from a reported attack on a freighter in the Strait of Hormuz, and the combination proved too much for German blue chips.

The opening bell sounded at 24,848, already well below Thursday's finish near the 25,000 threshold, and within the first half-hour any hopes of a bounce evaporated. By late morning the index touched a session low of 24,548 before clawing back to close just above that floor. Trading volumes came in roughly three percent below the five-day average, suggesting orderly selling rather than panic, while the VDAX-NEW volatility gauge climbed 3.1 percent to 17.35—institutional nerves were clearly on edge.

Semiconductor Sentiment Sours Despite Micron's Glimmer

What had looked like a promising start for the chip sector proved deceptive. Micron Technology's upbeat overnight read was quickly forgotten as fears of an AI-driven inflation spiral and potential price hikes for end-user devices took hold. Infineon lost 4.52 percent on Friday, and the broader tech rout pulled Siemens Energy down 5.84 percent (some analysts pointed to fresh doubts about long-term wind-power margins) and Zalando by 6.32 percent. The online fashion retailer had its own headache: news broke of a BaFin probe tied to its 2025 annual report and a transaction involving About You.

Rheinmetall endured an especially brutal week, shedding nearly 20 percent over five sessions as investors locked in profits from a record-breaking rally—making the defence stock the DAX's worst weekly performer.

Defensive Pockets Hold Firm While Exports Face Headwinds

Not every name bled red. SAP rose 2.16 percent to lead the gainers, followed closely by Beiersdorf and Adidas, both up around 2.1 percent, and Henkel with a near-1.6 percent gain. These defensive strongholds insulated the index from an even steeper decline but could not offset the damage from weakness in autos (Volkswagen and Mercedes-Benz both fell notably) and cyclical industrials.

On the currency and commodity front, the euro traded at $1.1384, gold rose to $4,090, and Brent crude slipped to $73.87—a backdrop that offers little tailwind for export-oriented DAX companies.

Chart Support Hangs by a Thread

Technically, the DAX is clinging to a slim 0.27-percent cushion above its 50-day moving average of 24,604. A breach below that would open the door toward 24,480, with the Friday low at 24,548 acting as the first line of defence. The relative strength index landed at 48—neutral territory, offering no directional hint. Year-to-date, the index is barely positive at plus 0.54 percent and stands roughly 3.3 percent below its 52-week high.

Sintra Summit and US Jobs Data Steal the Spotlight

The coming week is loaded with catalysts. The ECB's annual forum in Sintra kicks off Monday evening, and Christine Lagarde's take on inflation could move the euro and shift export prospects. Tuesday brings the preliminary German CPI reading for June, followed by euro-area inflation and US ISM data on Wednesday, then the critical US labour market report on Thursday—shifted up a day because of the July 4 holiday.

With the Fed's rate path hanging on those jobs numbers, and the Strait of Hormuz incident adding a layer of geopolitical risk, the DAX enters the new week with 24,500 acting as a psychological battleground below and 25,000 as the summit that just slipped away.