On Wednesday, US stock markets recorded a significant decline. The Dow Jones fell by about 1.9 percent to 41,860 points. Other major indices like the S&P 500 and Nasdaq also decreased; the S&P 500 lost around 0.4 percent, and the Nasdaq also fell by about 0.4 percent.
Causes of the Decline
On Tuesday, Wall Street ended its winning streak, attributed to uncertainties regarding US tax policy and political tensions. The reasons for the decline in US markets include political uncertainties such as debates over tax cuts, a downgrade of US creditworthiness, and a weakening dollar.
Impact on European Markets
The developments in US stock markets also affect investors in German-speaking regions. The negative cues from the US dampen the sentiment in European markets, particularly for the DAX. Although the long-term upward trend of the DAX remains intact and there is medium- to long-term potential, short-term risks exist. US futures are clearly in the negative, providing little inspiration for a recovery in the German stock market.
Investment Strategies for German-Speaking Investors
For investors in German-speaking areas, this means:
- Caution in short-term investment strategies given increased volatility.
- Monitoring global political developments, especially in the US.
- Considering possible negative impulses from overseas markets on European indices.
- The long-term potential of the DAX remains despite short-term setbacks.
Overall, a tense market situation shows increased risks due to political uncertainties in the US, which can have global repercussions.