German DAX Slides as US Markets Surge on AI Gains – September 10, 2025
Frankfurt, Germany – The German stock market closed lower Wednesday, with the DAX falling 0.4 percent to 23,633 points, a contrast to the bullish momentum seen in US markets fueled by strong performance in the artificial intelligence sector. while the S&P 500 continues to climb, European investors showed reluctance ahead of key central bank decisions.
The US market’s gains were especially driven by Oracle, whose share price soared over 41 percent following the release of its quarterly figures. This surge increased Oracle’s market capitalization by over $280 billion in a single day – exceeding SAP‘s current market capitalization of approximately $315 billion. Oracle, a former competitor to SAP, has significantly expanded its focus on AI technologies.
The DAX currently lacks companies with comparable scale and AI investment.Analysts suggest that while German competitors face challenges keeping pace with US technology giants given their financial resources and favorable business surroundings, long-term success remains possible.
Adding to the cautious sentiment, upcoming central bank meetings are weighing on European markets. The European Central Bank (ECB) will announce its interest rate decision on Thursday,followed by meetings of the US Federal Reserve and the Bank of England next week.
Political uncertainty in France also contributed to investor hesitation, with concerns that economic or banking disruptions in the country could impact broader European markets.Within the DAX, Siemens Energy and Rheinmetall led the gains, rising 4.1 and almost 3 percent respectively. SAP lagged, falling 2.8 percent following comments from SAP-CFO Dominik Asam. JP Morgan analysts noted that macroeconomic headwinds experienced in the second quarter are expected to persist into the third, possibly delaying contracts and impacting sales for the remainder of the year.They indicated that 2026 may prove “a little more difficult,” though improvements are possible. Despite these short-term challenges, JP Morgan maintains a positive outlook on SAP’s long-term growth potential, particularly through its AI-driven product development.