DAX at record high: Investors in a FOMO frenzy despite trade conflicts!

DAX at record high: Investors in a FOMO frenzy despite trade conflicts!

On May 28, 2025, the DAX, the German stock index, reached a new high of 24,325 points. However, this increase was quickly followed by a 0.4% decline to 24,125 points. Market analyst Jochen Stanzl explains that this high is interpreted as a buy signal and speaks of a “Fear of Missing Out” (FOMO) among investors. Nevertheless, the uncertainty surrounding the trade conflict between the USA and other countries is weighing on business expectations and corporate profits. The stock exchanges in New York were stable, while the Dow Jones rose by 0.1% and the Nasdaq 100 by 0.2%.

A crucial event is approaching in the evening: Nvidia's quarterly report, which is being followed with high expectations by market participants, especially after a share price increase of 56% since April. Meanwhile, the euro fell 0.3% to $1.1301, while German import prices fell 1.7% in April. In addition, the US Federal Reserve's minutes will come into focus, which could provide additional stimulus for the markets.

Crude oil and gold markets under observation

Oil prices rose on concerns about potential oversupply, with Brent crude rising 1.1% to $64.42 a barrel. On the other hand, gold prices have reached new record highs, indicating increased demand for safe-haven assets. Interest in gold is also growing given the turbulent market conditions and the challenge of the tariff conflict.

Rheinmetall shares have gained over 200% since the beginning of the year and are now above 1,900 euros, prompting analysts at UBS to raise their price target to 2,200 euros. In addition to Rheinmetall, Aroundtown shares, which benefit from rising rents, are also showing positive developments: net rental income rose by 1% to 295 million euros. Rumors of a takeover offer from Warburg and KPS are driving Gerresheimer shares to 70 euros per share.

Focus on the technology and financial sectors

Particular attention is paid to the technology sector, especially to the companies Nvidia and ASML. Nvidia is facing increasing restrictions on AI chip shipments to China, weighing on the market. Company reports released today include Rio Tinto, ASML, Sartorius, U.S. Bancorp as well as Abbott Laboratories and Alcoa. ASML in particular is seen as groundbreaking for the entire chip industry.

In the financial sector, UniCredit plans to increase its stake in Alpha Bank from 10% to 20%, which promises an additional profit of 180 million euros per year. UniCredit is also pursuing takeovers of Commerzbank and Banco BPM. Overall, there is a complex interplay of factors influencing the markets: from geopolitical tensions to corporate news to growing raw material prices.

Finally, it should be noted that the markets are navigating a phase of uncertainty, depending on trade policy developments and upcoming company announcements. The next few days could be crucial for the direction of the DAX and other important indices.