Market report: DAX is approaching its record high again

Before the start of Xetra trading, the broker IG Markets estimates the German leading index with an increase of 0.9 percent to 26,509 points. At the beginning of the week, the DAX ended trading with an increase of 1.7 percent to 26,267 points. This means it made it back over the 26,000 point mark and is approaching its record high from last Thursday at 26,692 points. The leading German index was then hit by the wave of sales following the Democrats' victory in the US midterm elections.

Jochen Stanzl, chief market analyst at Consorsbank, believes the AI ​​crisis is not yet over, despite the countermovement at the beginning of the week. “Even if we see a stabilization in prices, there is growing AI fatigue among investors,” said the expert. They are no longer willing to pay any price for big promises, but want to see results.

The market received support on Monday from falling oil prices. They are a glimmer of hope for investors who are counting on a diplomatic rapprochement in the war between the USA and Iran, commented Salah-Eddine Bouhmidi, Head of Markets at broker IG. Brent crude oil from the North Sea fell by 1.2 percent to $91.44 per barrel (159 liters). US oil WTI was 1.4 percent weaker at $85.63.

The latest developments raised hopes of an early end to the conflict in the Middle East, said Nick Twidale, chief market strategist at ATFX Global. However, the risk now is that the markets have moved too far and too fast. "Any indication of a breakdown in negotiations could lead to a significant price increase as traders would quickly price in the geopolitical risk premium."

But tailwind comes primarily from the strong Wall Street. The US stock exchanges have gained significantly after the biggest weekly loss since April 2025. The Dow Jones closed 2.2 percent higher at 52,390 points. The technology-heavy Nasdaq advanced 2.7 percent to 25,253 points, while the broad S&P 500 gained 2.3 percent to 7,550 points.

Some analysts are now seeing last week's selloff as an overreaction. However, other experts urged caution. “When it comes to trading AI stocks, the moment of truth is yet to come,” said Ted Parkhill, founder and CEO of asset manager Incline.

Thomas Mathews from the analysis firm Capital Economics made a similar statement. According to the manager, signs that major technology companies are reducing their capital spending could further weigh on technology stocks.

However, against the general trend, the shares of the chip giant Nvidia fell by 4.2 percent and closed at their lowest level since April 7th. The background is investors' doubts about the future of company boss Jensen Huang after an internal investigation into possible spying by foreign secret services became known.

The experts at Index-Radar see a possible resignation of Jensen Huang as a significant risk. Huang has shaped Nvidia like no other CEO has shaped his company. He is considered one of the key figures in the AI ​​boom.

The most important event of the day today is likely to be the release of US consumer price data for October at 2:30 p.m. Robert Greil, chief strategist at private bank Merck Finck, expects inflation to reach four percent.

“A surprisingly high inflation value would increase interest rate fears and further exacerbate doubts about the AI ​​story,” commented Maximilian Wienke, market analyst at broker etoro. The majority of economists currently expect the US Federal Reserve (Fed) to raise interest rates in December.