The DAX surpassed the 24,000-point mark for the first time on May 20, 2025, indicating a positive market development and holding great relevance for private investors. This development is part of an extraordinary market rally that began on April 7, 2025, when the DAX fell to 18,489 points, triggered by the announcement of new U.S. tariffs by President Donald Trump.
Background of the Market Rally
- Start of the Rally: The market rally began on April 7, 2025, when the DAX fell to 18,489 points. This day was referred to as “Panic Monday” as it was triggered by the announcement of new U.S. tariffs, which led to panic selling worldwide.
- Record Highs: Since then, the DAX has reached several record highs, including the current peak of over 24,000 points. This is the 26th record high this year and reflects the continuing strength of the German stock market.
Current Market Development
- Surpassing 24,000 Points: On Tuesday, May 20, 2025, the DAX surpassed the 24,000-point mark for the first time. At times, the peak was at 24,064 points.
- Year-to-Date Performance: The DAX has gained about 20 percent since the beginning of the year, indicating strong market development.
- Influencing Factors: Hopes for peace in Ukraine and rapprochement in the tariff dispute between the U.S. and China have also contributed to this positive development.
Outlook and Challenges
- Japan Trap: Despite the positive development, the DAX faces the so-called “Japan trap,” which means that after a long upswing, a phase of stagnation or even decline could follow.
- U.S. Credit Concerns: Although concerns about U.S. credit have temporarily subsided, the downgrade of U.S. creditworthiness by Moody’s has shown that such factors remain in focus for investors.
Overall, the surpassing of the 24,000-point mark demonstrates the continued strength of the German stock market, although challenges such as concerns over U.S. credit and the threat of a “Japan trap” remain.