Stock market party! DAX reaches record high after tariff cuts and boom mood

Stock market party! DAX reaches record high after tariff cuts and boom mood

Markets have had a remarkable week, with the reduction in tariffs between the US and China playing a major role. On May 14, 2025, a new tariff regime came into force that reduced US tariffs on Chinese imports from 145% to 30%. At the same time, China's tariffs on US imports fell from 125% to 10%. These developments have led to a euphoric reaction on the stock markets. Loud finance.net US indices recorded significant price gains: The S&P 500 closed 4.54% above the previous week's closing price, the Dow Jones rose by 2.6%, while the NASDAQ-100 even rose by 6.35%.

In Europe, the DAX was also optimistic and catapulted to an all-time high of 23,540.05 points, which corresponded to a gain of 1.6%. The positive economic expectations for Germany and the Eurozone contributed to this development.

US inflation at record low

Another reason for the good mood on the markets was the publication of inflation figures in the USA. Inflation fell to 2.3%, the lowest level since February 2021. Core inflation remained stable at 2.8%. This positive development reinforces expectations of a solid economic recovery and suggests stronger consumer behavior.

Quarterly figures from Bayer and Allianz

This week's corporate news includes the publication of Bayer's quarterly figures. The company reported a 7.4% decline in operating profit to 4.09 billion euros, while sales remained stable at 13.7 billion euros. Nevertheless, the market initially reacted positively and Bayer shares rose by 10%. However, after a negative rating of glyphosate by the Minister of Health, the share price fell by 9%.

In contrast to Bayer, Allianz SE achieved a record profit of 4.2 billion euros in the first quarter. Although net profit stagnated at 2.6 billion euros due to a tax provision, Allianz's business volume rose 12% to 54 billion euros and the combined ratio improved to 91.8%. Nevertheless, Allianz shares fell 3% after the figures were announced.

These developments underline the dynamics on the financial markets. However, analysts note that despite the positive sentiment, the information presented should not be viewed as a reliable indicator of future performance. For example, the document from wallstreet-online.de on the complexity of financial products and the need to seek individual, expert investment advice.