The DAX has reached several record highs in recent months, attributed to an extraordinary price rally. This development began after a so-called “Panic Monday” on April 7, 2025, when the DAX fell to 18,489 points, triggered by US tariffs announced by President Donald Trump. Since then, the index has continuously gained value, surpassing the 24,000 points mark in May 2025. On May 27, 2025, the DAX reached a new all-time high of 24,215 points.
Market Sentiment and Investor Decisions
The current market sentiment is characterized by fear and relief. Many investors trade not solely out of conviction but react to the uncertainties and geopolitical risks affecting the market. Despite these uncertainties, the DAX shows remarkable strength, indicating the continued robustness of the German stock market.
Economic Background
Compared to US stock markets, which are in the negative, the DAX has performed significantly better. Since the beginning of the year, the index has recorded a price increase of 21.6 percent, while the Dow Jones has fallen by 1.6 percent and the Nasdaq 100 by 3.1 percent. This development is all the more remarkable as it occurs despite ongoing economic uncertainties and geopolitical risks.
Current Developments
The MDAX, the index for medium-sized companies, has also risen and is at its highest level since 2022. This suggests that the positive trend is not only limited to large companies but also affects the mid-sized sector.
Outlook
The recent suspension of tariff threats by US President Donald Trump has led to some relief in the markets and could promote further price gains on Wall Street. Nevertheless, market sentiment remains tense, as investors continue to watch the developments in geopolitical tensions and economic uncertainties.