Crash, recovery, all-time high: DAX up two percent in August

CMC Markets: The German stock index is currently riding a wave of optimism and today closes its fourth consecutive week of gains, including a new all-time high to crown this rise.

Today the market received a further boost from a series of good inflation data.

Inflation in the eurozone has fallen to its lowest level since mid-2021, cementing the next interest rate cut by the European Central Bank in September.

The current price development also creates further downward scope for the period thereafter.

Nvidia quarterly figures

The most closely watched part of the earnings season, Nvidia's quarterly results, met or exceeded analysts' estimates in almost every area.

However, investors did not reward this performance.

They have become accustomed to brilliant quarterly results.

What was interesting, however, was the good development of the small technology companies that are working on their AI solutions in the shadow of Nvidia and whose shares were able to increase after the figures were released.

Monetary policy

In September, investors' focus is likely to shift back to monetary policy and economic data. Looking back, it must be said that although August began with a “near crash” and moment of shock, it is now ending with a powerful recovery.

The stock exchanges from Frankfurt to New York are closing at record highs or at least just below them.

Since November 2023, the DAX has only closed two of the ten months in the red.

In the US, the S&P 500 has experienced only one negative month during this period, representing a gain of 17 percent so far in 2024.

This means that the stock markets are still in an upward trend that does not yet seem to want to end.

DAX – Interactive Chart