The DAX has made an impressive comeback, recording four consecutive positive days. Investors took advantage of the recent pullback to buy back into the market. The leading index closed with a gain of 1.12 percent at 24,192.50 points, once again setting its sights firmly on its all-time high. But what is driving this optimism among investors, despite a challenging global environment?
The answer lies in the US: The stock markets are beginning to price in a potential interest rate cut by the Federal Reserve in its next cycle. This is triggered by new tariffs, which are sparking discussions about economic developments and keywords like "stagflation." The fear of stagflation could actually prompt the Fed to act, as it has so far only been observing the new situation's effects. Since markets price in the future, we are already seeing this effect. A look at the so-called Fed Watch Tool clearly shows that the market assumes with a 91 percent probability that US key interest rates will be lowered in September.
Heidelberg Materials Ignites a Rally: These Stocks Are Soaring to the Top!
Among individual stocks, Heidelberg Materials launched a rocket, soaring 6.1 percent. It was closely followed by Commerzbank, which managed to recover its previous day's sell-off with a gain of 4.9 percent. Investors saw this as a chance to get into the bank's strong uptrend at a better price. BASF came in third with a price increase of 4.7 percent.
DAX at a Crossroads: Will Resistance Stop the Momentum?
The current trend in the DAX looks positive. However, the index is now entering price ranges that could prove to be resistance. If these can be overcome, a new all-time high is not out of the question. Nevertheless, caution is advised: the negative slope of the closely watched 20-day moving average persists and serves as a warning sign.
Will the DAX stay on a record course, or will resistance slow it down?
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