DAX Opens Nearly 0.4% Lower Following AI and Semiconductor Sell-off

Following a broad sell-off in artificial intelligence and semiconductor shares, the DAX opened Monday trading down nearly 0.4 percent, according to IG Markets.

The German benchmark index had touched a record high of 26,692 points on Thursday before dropping more than 1,000 points on Friday to close 1.92 percent lower at 25,820 points, deraktionaer.de reported. The MDAX also declined, falling 0.81 percent to 30,642 points.

Asian trading offered some relief at the start of the week. Two hours after opening, the Nikkei 225 gained roughly 3.0 percent, the Kospi rose 1.2 percent, and the Hang Seng advanced about 0.7 percent.

Investors remain focused on growth concerns surrounding the artificial intelligence sector. Following the Democrats’ victory in the US midterm elections, market participants anticipate stricter regulations on AI infrastructure build-out.

Interest rate anxieties compound market pressures after a strong US employment report heightened expectations for a Federal Reserve rate hike in December. VP Bank Chief Economist Thomas Gitzel expects the US inflation rate to climb to approximately 4.0 percent in October, with official data scheduled for release on Tuesday.

Meanwhile, traders await a decision from US President Donald Trump regarding a potential resumption of the conflict involving Iran. Hopes for a faster resolution had previously pushed oil prices down, with Brent crude currently trading near 98 dollars per barrel and gold priced around 4,120 dollars per troy ounce.

Corporate reporting dominates the early calendar, with Unicredit releasing figures at 07:00 CET, followed by Hannover Rück and GEA at 07:30 CET. Deutsche Telekom hosts a press conference in Munich at 10:00 CET regarding AI infrastructure for Germany and Europe, featuring CEO Tim Höttges, Siemens CEO Roland Busch, Economics Minister Katherina Reiche, Digital Minister Karsten Wildberger, and Minister President Markus Söder. Eurozone Sentix investor confidence data follows at 10:30 CET.

Infineon reports annual figures on Tuesday at 07:30 CET, and Siemens Energy releases results on Wednesday, placing two prominent beneficiaries of the AI boom into focus.

Hochtief shares drew heavy attention on Friday, surging 5.5 percent to 365.60 euros following reports that majority shareholder ACS was considering a full takeover and an initial public offering of its US subsidiary Turner. ACS dismissed those reports over the weekend in a statement to the Spanish stock market regulator, prompting Jefferies analyst Graham Hunt to point toward the upcoming ACS capital markets day on November 12.

Siemens Energy shares also performed strongly, while Munich Re, Hannover Rück, DHL, Siemens, and Rheinmetall registered declines. Wall Street technology stocks attempted a recovery on Friday following heavy losses, with the Nasdaq Composite rising 1.09 percent to 24,579 points and the S&P 500 gaining 0.31 percent to 7,377 points, while the Dow Jones fell 0.46 percent to 51,286 points.

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