Nail-Biter at the Sound Barrier: DAX Above 25,000 Points, But the Bulls Are Gasping for Air!
The German leading index dragged itself over the psychologically all-important 25,000-point mark with its last ounce of strength on Thursday! But there is absolutely no trace of pure euphoria or an explosive liberating blow. It is a grueling, almost powerless back-and-forth that in the end salvaged the DAX with a lukewarm plus of 0.37% to exactly 25,026.80 points. The bulls look exhausted! Nevertheless, geopolitics is delivering the ultimate bombshell: The historic peace deal between the U.S. and Iran has finally been officially signed! The powder keg at the highly sensitive Strait of Hormuz is cooling down abruptly. Now, the falling energy prices just need to be radically passed on to consumers to finally free the suffocating economy from its geopolitical chokehold!
Inflation Shock and Interest Rate Panic: Is the Fed Pulling Out the Brutal Club Now?
But while geopolitics breathes a sigh of relief, the next toxic storm is already brewing on Wall Street! The merciless inflationary spiral still has the global economy in an iron grip and is now calling the powerful U.S. Federal Reserve onto the scene. The market is trembling at the absolute horror scenario: Will the Fed ruthlessly hike interest rates again for short-term crisis management? The renowned FedWatch Tool from the CME Group is already sounding a massive alarm, pricing in an ice-cold interest rate hike for July 29, 2026, with a probability of 39.6%! The immediate consequence? The U.S. dollar instantly ignites the turbo and mercilessly whips the Dollar Index above the magic 100-point mark.
Fateful Friday: Will the Iron 25,000-Point Fortress Withstand the Pressure?
For now, the stock markets are taking this looming interest rate shock with astonishing coolness, but beneath the surface, it is boiling tremendously! Should the rock-hard interest rate rumors solidify in the coming days, a brutal reality check threatens the markets. From a charting perspective, the DAX is currently dancing on a razor's edge right at 25,000 points. For today's fateful Friday, there is only one single, irrefutable mission: This massive support line must be defended with all our might! Even though the leading index is currently projecting absolutely no rally mood, there is fortunately no sign whatsoever of a panicked sell-off. The signs are good that the bulls will hold this grueling level with iron resolve and force a positive end to the week!
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