The DAX 40 extended its losses to over 2% on Wednesday, reaching levels not seen in more than a week, in response to President Trump’s critical comments regarding Iran. US President Trump stated at the NATO summit that he considers the US-Iran memorandum of understanding to be “over,” further asserting that negotiations with Tehran are a waste of time.

Market sentiment exhibited fragility following the exchange of attacks between the US and Iran, compounded by Washington’s reinstatement of sanctions on Iran’s oil sector in response to alleged assaults on three vessels in the Strait of Hormuz. Simultaneously, investors persisted in diminishing their exposure to semiconductor and AI-related equities, driven by growing apprehension regarding inflated valuations.

Losses were pervasive across various sectors, with banks, autos, software, technology, industrials, and consumer discretionary stocks at the forefront of the decline, whereas utilities stood out as the sole area of resilience.