The DAX began trading on May 23, 2025, just below its previous record high, which was approximately 24,152 points by midweek. In the morning, the index traded at around 24,031 points, reflecting a slight increase of about 0.1 percent.
Drivers of the Record Rally
The recent record rally of the DAX is significantly driven by international investors and positive developments on a global level. Key factors include progress in the trade conflict between the U.S. and China, as well as hopes for a de-escalation in the Ukraine war. Additionally, potential interest rate cuts by the European Central Bank could further boost the market.
DAX Reaches Historic Heights
Since the beginning of the year, the DAX has gained about 20 percent and reached the mark of over 24,000 points for the first time on May 20 – a historic all-time high. This impressive performance reflects the confidence of international investors in the stability and growth potential of the German economy.
Caution Regarding Possible Corrections
Despite the strong performance, there is increasing concern among investors regarding potential market corrections. The DAX is considered “overbought” in the short term, which does not exclude a consolidation phase or even a correction. Additional uncertainties arise from worries about U.S. debt, causing investors to hesitate about larger commitments.
In summary, the DAX is hovering just below its record high, supported by international optimism and geopolitical hopes, while caution regarding a possible market correction is growing.