The long-awaited interest rate cut by the US Federal Reserve has finally sparked a change: on Thursday, the DAX was noticeably buoyed. After the Fed lowered the key interest rate by 25 basis points, German investors were also infected by the market's euphoria. The recent sell-off appears to be over for now. Experts believe a breakout above the September 2nd high is now more likely, which could be the initial spark for a new rally toward the all-time high. While the Fed has signaled further rate cuts in 2026, the market anticipates additional cuts this year, as a "soft landing" for the economy appears unlikely. These expectations are also driving US markets to new highs.
SAP as the Engine: Is the DAX Benefiting from Tech Euphoria?
The upswing in the DAX on Thursday was led by a strong SAP stock, which, as a heavyweight, set the tone with a gain of over 5 percent. Zalando also shined with an increase of over 5 percent, while Commerzbank rose by 4.2 percent. In particular, SAP stock benefited from the momentum of US technology stocks, which saw a strong rally after the rate cut. From a technical perspective, SAP broke away from a key support level, which now unlocks the potential for an upward trend reversal. A technical formation in the form of a double bottom could strengthen the buy signals in the coming days.
On the Way to an All-Time High: DAX at a Critical Hurdle
The positive development in SAP stock could also play a key role for the broader market. If the DAX manages to sustainably break the 23,800-point mark, it would generate a clear buy signal that could attract more investors to the market.
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