Overview
- The DAX reached intraday peaks above 25,600 and moved toward 25,800 on Friday after markets reacted to markedly slower US hiring for June, which reduced odds of an immediate Fed rate increase.
- Falling oil prices helped lift sentiment as reports of tentative progress in US–Iran talks and resumed ship movements through the Strait of Hormuz eased an inflation risk tied to supply disruptions.
- Technical market forces amplified gains, with retail short positions and low summer liquidity producing a short squeeze that added upward momentum to the rally.
- Market moves were uneven: the Dow approached record levels while the Nasdaq and many chip and AI‑linked stocks stayed volatile, and several defence names saw idiosyncratic swings on company news.
- KNDS formally delayed its planned IPO because of weak conditions for defence stocks, and the broader rally highlights that many DAX firms earn most revenue abroad so the index can rise even with weak German domestic growth.