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5d ago

DAX Surpasses 24,000 Points for the First Time in History

The German stock index reaches a record high, driven by trade optimism and geopolitical developments, but analysts caution about overvaluation risks.

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Handelssaal der Deutschen Börse in Frankfurt.
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Overview

  • The DAX climbed to an all-time high of 24,006 points on May 20, 2025, marking a 20% gain since the start of the year and a full recovery from its April slump.
  • Investor sentiment has been bolstered by hopes for a resolution to the US-China trade conflict and potential Ukraine ceasefire talks following discussions between Donald Trump and Vladimir Putin.
  • The market rebounded quickly after Moody’s downgraded the US credit rating earlier this month, with the downgrade seen as aligning with other rating agencies' assessments.
  • Analysts warn that the DAX is technically overbought and valuations are stretched, suggesting a potential correction could occur in the near term.
  • The rally highlights the resilience of internationally focused DAX companies, supported by a weak euro, strong earnings reports, and expectations of ECB rate cuts.