Frankfurt Hit by Double Whammy: Tech Rout and $165 Billion Quarter-End Rebalancing
Published on 06/24/2026 at 05:05 | Redaktion boerse-global.de
Frankfurtâs benchmark index slipped back below 25,000 on Tuesday, caught between a ferocious global technology selloff and a looming, mechanised portfolio shift that is expected to drain billions from equity markets. The DAX finished at 24,893 points, down 0.98%, leaving its year-to-date gain at just 1.4%.
The selling pressure came from two distinct directions. From Asia, a tech-driven rout that forced a trading halt in South Korea and knocked 10% off the Kospi sent shockwaves across European bourses. At the same time, a quarter-end rebalancing estimated by JPMorgan at $165 billion â in which pension and sovereign funds mechanically rotate out of equities into bonds â is keeping buyers on the sidelines.
Infineon bears the brunt, SAP holds the line
The semiconductor sector took the heaviest hit. Infineon plummeted 6.3%, making it the worst performer in the DAX, as US chip stocks Micron and Sandisk slumped 10% and 11.6% respectively. Siemens Energy dropped 4.2%, caught in the downdraft after a recent rally. The broader tech anxiety was amplified by the dramatic collapse of SpaceXâs market capitalisation, which lost over $600 billion in a week, rekindling fears that the artificial intelligence bubble may be deflating.
On the defensive side, SAP climbed 1.7% and acted as the indexâs main stabiliser, its software-focused business model insulating it from the hardware rout. Deutsche Telekom edged up 0.46% to âŹ26.24, supported by a Fitch upgrade to âA-â, which highlighted its improved US profile and strong cashflow outlook through 2027.
Should investors sell immediately? Or is it worth buying DAX?
Curious divergences and capital moves
Brenntag provided one of the dayâs more puzzling moves. The chemicals distributor raised its 2026 EBITDA forecast to between âŹ1.25 billion and âŹ1.4 billion, yet saw its shares fall 3.6%. Analysts at JPMorgan and UBS attributed the strong second-quarter results to one-off effects from the Middle East conflict, leaving the market unconvinced.
RWE held its ground despite launching a multi-billion-euro capital increase. The utility placed roughly 74 million new shares at âŹ54.00, raising âŹ4 billion gross to fund the expansion of its stake in grid operator Amprion to 55%. The stock closed nearly flat at âŹ55.64. Vonovia added to the dayâs corporate action with a âŹ750 million convertible bond maturing in 2031, but shed almost 3% as the placement weighed on sentiment.
Relief from oil and a steady chart
A geopolitical development provided some offset. Progress in USâIran talks, including a 60-day extension of permission for Iranian oil exports, pushed Brent crude to $76.51 a barrel, its lowest since March. That helped calm inflation jitters briefly.
DAX at a turning point? This analysis reveals what investors need to know now.
Despite the drop, the DAX remains technically intact. It continues to trade above its 50-day moving average near 24,560 points, offering a near-term support level, while the 200-day line is still comfortably below. The relative strength index stands at 53, indicating neither overbought nor oversold conditions.
All eyes now turn to Micronâs quarterly report due after the US close on Tuesday. The chipmakerâs numbers are widely viewed as a stress test for the entire semiconductor industry, and will likely set the tone for Infineon and the broader market when trading resumes on Wednesday.
Ad
DAX Stock: New Analysis - 24 June
Fresh DAX information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
