Introduction
On Thursday, the DAX fell below the important mark of 24,000 points, despite promising quarterly numbers from NVIDIA and hopes for a de-escalation in the trade conflict providing positive impulses. Nevertheless, the DAX could not reach a new record high, which can be attributed to various factors.
Market Influences
Positive Impulses from US Technology Stocks
The US technology stocks, particularly NVIDIA, gained momentum from strong quarterly numbers. However, this positive impulse was not enough to lift the DAX above the psychologically important mark of 24,000 points.
Uncertainty Due to US Trade Policy
Market uncertainty remains high, particularly due to the unclear US trade policy. An appeals court had lifted the blockade on many Trump tariffs, causing insecurity and burdening the markets. The US Supreme Court is expected to make the final decision.
Inflation Data and ECB
The inflation data from Germany, which slightly decreased to 2.1 percent in May, influences expectations for the next ECB council meeting and their interest rate decisions. They are just above the European Central Bank’s target value.
Year-to-Date Performance of the DAX
Despite the setback on Thursday, the DAX has performed well this year so far. With an increase of about 20 percent, the index has experienced a strong rally since the low point in early April and reached a record high of over 24,000 points for the first time in mid-May.
These factors explain why the DAX lagged behind during the trading day despite positive individual reports.