The stock market shock arrived just in time for the start of the year's statistically weakest month. In just two trading days, the DAX lost over 1,000 points, putting investors on high alert. The index recently fell by 2.6 percent, closing well below 24,000 points at 23,425.97. The latest losses are driven by massive economic concerns. While companies continue to report solid figures, with some even posting great profits, the outlook is gloomy. In short, the economy appears to be stalling significantly.
Economic Worries as a Downward Turbo: Will the DAX Plunge Deeper Now?
Even the record valuations of major US tech companies are no longer enough to lift the general mood. The underlying economic conditions are becoming increasingly difficult, and the recent poor unemployment figures from the US also put pressure on their markets. This provided DAX investors with further justification to continue the sell-off.
From a technical perspective, the index is now approaching a critical support level formed by widely watched moving averages. This could give the DAX a short-term upward boost. However, it remains to be seen whether this is just a brief moment of relief before the next push south.
Bayer Defies the Storm: This Stock Is Proving Its Strength!
One stock that remained unimpressed by the downward spiral was Bayer. The share rose by 2.8 percent, underscoring the validity of its uptrend. Such outperformance in a weak overall market can be a sign of a stock's intrinsic strength. Fundamentally, this can be attributed to strong operational results that significantly exceeded analyst expectations. For investors looking for stability in uncertain times, Bayer could therefore be an interesting alternative.
Will the technical support hold the DAX up, or is a further fall looming?
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