# German Stocks Tank as AI Bubble Fears Resurface

DAX just had its worst day in four sessions, dropping 1.01% to close at 23,340.70 points—and honestly, it's giving "risk-off" vibes all around.

The culprit? A perfect storm of three things: (1) Investors are getting nervous about AI stock valuations being stretched too thin, (2) The Fed's next move is still up in the air with key economic data missing, and (3) Everyone's waiting on September US jobs numbers and Nvidia earnings to figure out which way the wind is blowing.

The carnage is brutal—only 3 out of 40 DAX stocks are in the green right now. Here's the damage report:

**Winners (rare birds):**
- Rheinmetall pumped 3% after announcing a new US strategy and raising its 2030 revenue target to around €50 billion
- Deutsche Boerse +0.6%, Zalando barely hanging on

**Losers (the red sea):**
- Siemens Energy bleeding hardest at -4%
- Deutsche Bank and Merck down 3.6% and 3.4%
- A whole cluster of industrial/auto names got hit: Daimler Truck (-2.2%), Infineon (-2.5%), Mercedes-Benz, BMW, VW, Porsche all in the red
- Even defensive plays aren't safe—Deutsche Telekom and Adidas down too

**The takeaway?** When macro uncertainty spikes and AI valuations come under fire, everyone sells first and asks questions later. Index hit 23,230 intraday before bouncing slightly—but the damage is done. Next week's jobs report could be a circuit breaker either way.