The stock market is gaining momentum thanks to falling oil prices and positive employment data from the USA, driving European exchanges to new heights. The DAX has reached a new record high, the first since January.
Germany’s leading index, the DAX, has climbed to a new record for the first time since January, peaking at 25,608 points, a gain of 2.3% compared to the previous day’s close.
This recent surge was bolstered by U.S. employment data. June’s figures indicated a significant slowdown in hiring dynamics in the U.S., which tempered the recent job market recovery. Consequently, expectations for a first interest rate hike in the U.S. have been pushed back, according to market analysts.
Artificial Intelligence: A Driving Force
Investors are also placing their bets on the perpetual hot topic: Artificial Intelligence (AI). The excitement surrounding AI is positively impacting the German stock market. Companies in the DAX, such as Infineon, are enjoying increased interest, while Siemens Energy is seen as a beneficiary of the rising energy demand precipitated by AI applications.
Despite setbacks, hopes for a diplomatic resolution in the ongoing Iran conflict remain. This has contributed to a decline in previously soaring oil prices.
In January, the DAX cleared the 25,000 point mark, but by the end of March, it hit a low of around 22,300 amidst tensions from the Iran conflict.
Dow Jones Hits New Heights
The Dow Jones Index has also reached a new record high. On the last trading day of a holiday-shortened week, the iconic Wall Street index rose by 0.9%, closing at 52,761 points, surpassing its previous record from the day before.
