DAX Defies New Tariffs, Reaches Record High
The DAX continues its record-breaking rally, undeterred by the newly introduced U.S. tariffs. Just shy of 22,000 points, Germany’s leading stock index has hit a fresh all-time high. Meanwhile, gold demand has surged to unprecedented levels.
Investor enthusiasm in the German stock market remains strong. Even the newly imposed U.S. tariffs have failed to dampen market sentiment. In early trading, the DAX climbed to an all-time high of 21,977 points. “The DAX is currently the stock market star of the year,” said Thomas Altmann, portfolio manager at asset management firm QC Partners.
DAX Outperforms Dow
Lately, even Wall Street has struggled to keep pace with the German stock index. While the DAX has been breaking records throughout 2025, only the S&P 500 among major U.S. indices has managed to reach a historic peak. In contrast, the Dow Jones and Nasdaq indices are still waiting for their next all-time highs.
Despite the rally, some experts remain cautious about the sustainability of the DAX’s record run. Concerns over competition from China in the artificial intelligence sector, as well as investor fears regarding tariffs, have only temporarily receded. However, with the index maintaining its upward trajectory, reaching the 22,000-point milestone now seems inevitable.
Dow Futures Decline Ahead of Powell Testimony
For now, DAX investors are unlikely to receive support from Wall Street. U.S. stock futures are in the red, signaling a lackluster start to trading in New York. Dow futures are down 0.2%, while Nasdaq 100 futures have lost 0.4%.
A look at the economic calendar also advises caution. Federal Reserve Chairman Jerome Powell is set to testify before the U.S. Senate today. The Fed recently halted its series of interest rate cuts, a move that has drawn criticism from President Donald Trump.
Trump’s Role in Gold’s Record Surge
Gold prices continue their upward climb. In the morning session, an ounce of gold briefly reached $2,942.71. Just a day earlier, the precious metal had crossed the $2,900 threshold for the first time in stock market history.
Gold has benefited from growing market uncertainties, reinforcing its reputation as a “safe haven” for investors. Trump’s latest tariff announcements have fueled fears of rising inflation and slower global economic growth. At the same time, investors are wary of potential new tariffs on raw material imports, including gold bars, under the Trump administration’s trade policies.
