SAP's Slide Weighs on DAX as German Economic Data Darkens the Mood

Infineon's blistering rally proved no match for the weight of SAP's decline Thursday, as Germany's blue-chip index found itself pinned between a tech-sector reassessment and a fresh dose of economic gloom.

The DAX closed at 24,155 points, shedding 0.16% on the day after briefly threatening to breach the psychologically important 24,000 threshold. The session low of 23,994 points underscored just how fragile sentiment has become, with only a friendlier open on Wall Street providing enough ballast to steady the ship by afternoon trading.

A Tale of Two Sectors

SAP, the index's heaviest constituent by a considerable margin, tumbled 6.11% to €140.70. Market participants pointed to a broad revaluation of artificial intelligence growth expectations that has been weighing on the technology sector across the board. Qiagen and Fresenius also came under pressure, shedding roughly 5% and 4% respectively.

The flip side of that rotation played out in Infineon, which surged 8.26% to €53.45 — the strongest performance in the entire index. Strong results from US peers signaled a demand recovery in semiconductors, particularly tied to the expansion of AI data centers. Siemens Energy and Continental also posted solid gains, reinforcing the sense that capital is shifting from richly valued growth names into more cyclically exposed, value-oriented plays.

Sartorius provided the day's sharpest contrast. The laboratory equipment maker's preferred shares cratered 10% after reporting a slight decline in adjusted net profit for the first quarter.

Economic Data Adds to the Gloom

The selloff wasn't purely company-specific. Germany's composite purchasing managers' index slid to 48.3 in April, slipping below the 50-point expansion threshold for the first time since May 2025. The services sector was the primary culprit, delivering a far weaker reading than economists had anticipated. The private sector's contraction marked a fresh headwind for an economy already navigating a challenging environment.

Rising oil prices compounded the pressure. Brent crude climbed above $103 a barrel as fading hopes for a ceasefire in the Middle East pushed energy costs higher, reigniting inflation expectations and narrowing the European Central Bank's room for maneuver on interest rates. The ten-year Bund yield barely budged, suggesting rate anxiety wasn't the main driver of equity weakness — but the oil spike added an unwelcome layer of uncertainty.

Options market activity reflected the nervousness. Put volumes rose noticeably as some participants hedged against further downside, while ETF inflows into European blue-chips cooled slightly.

Technicals Hover at a Crossroads

Chart watchers are eyeing the 200-day moving average at roughly 24,115 points. The DAX closed just above that level, with the gap amounting to less than 0.2%. A decisive break below that line could trigger a fresh wave of selling, with the next meaningful support zone sitting around 23,400 points. On the upside, resistance stands at 24,366.

The relative strength index sits at 46, firmly in neutral territory and well clear of overbought conditions. Over a twelve-month horizon, the index still shows a gain of nearly 10%.

All eyes now turn to Walldorf. SAP is due to report quarterly earnings after the US market close, and the outcome could set the tone for Friday's session. A weak outlook would put the 24,000 support level under serious threat. Beyond that, a busy calendar of additional DAX earnings and fresh US economic data will keep traders on edge in the sessions ahead.

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