Dear traders, dear stock market friends.
The bulls have also returned to the German stock market. After a brief breather in July, the DAX recently resumed its overarching upward movement with renewed momentum, reaching a new all-time high once again in the past trading week. The rally is supported not only by a friendly sentiment in international stock markets, but increasingly also by strong corporate earnings and initial positive signals from the German economy.
DAX surpasses 26,000-point mark
Already at the end of July, the DAX picked up noticeably again. On July 31, the German benchmark index closed at 25,629 points, followed at the beginning of August by the jump above the 26,000-point mark. On August 12, the DAX reached a new all-time high at around 26,560 points and, at the weekend close on Friday, traded just below it at around 26,440 points.
This represents an increase of about 3 percent since the end of July. Since the beginning of the year, the DAX has now gained approximately 8 percent.
Tailwinds came recently from the geopolitical side, among others. Hopes for an easing of tensions in the conflict with Iran caused oil prices to drop significantly at times in early August. That took some pressure off inflation and interest rate concerns and accordingly ensured a better mood in the stock markets.
In addition, there is a surprisingly strong earnings season so far. Many companies have impressed with their figures, which is providing additional support for the rally. European stock markets as a whole also benefited from this, recently hitting new record highs several times.
Trend movement already well advanced
From a chart analysis perspective, the overall picture remains clearly bullish. The long-term upward trend is intact, and the DAX continues to mark rising highs and rising lows.
However, the current trend is already quite advanced. Following the price gains of recent weeks, a short-term consolidation or correction would therefore not be a surprise. Such a movement would not change the overall positive chart picture in the first place.
The short-term trend can currently be seen particularly well in the hourly chart. A first important level is at 26,275 points. As long as the DAX is able to hold above this level, the short-term upward trend remains intact for now.
A sustained break below the 26,275-point mark, on the other hand, would provide an initial short-term signal of weakness and pave the way for a slightly larger counter-movement.
The next relevant support zone is then in the range of approximately 25,800 to 25,900 points. There, it should become apparent whether buyers will once again use a potential correction to enter the market.
Even a pullback into this range would initially be considered merely a normal correction within the still-intact overarching upward trend.
Fundamental Tailwind for the DAX
The positive price trend is also receiving increasing support from fundamental factors. Particularly striking in this regard are the recently published business figures of major German companies.
DAX-listed companies increased their cumulative operating profit in the second quarter by 16 percent year-over-year to 52.6 billion euros. This is the highest figure ever recorded in a second quarter. At the same time, the companies’ total revenue rose by 4.6 percent to a record high of around 463 billion euros. Several major players in particular have recently posted impressive results.
- Siemens reported, for example, for the past quarter, a 25 percent increase in profit in its industrial business to around 3.5 billion euros, thereby achieving the highest quarterly figure in the company's history. At the same time, incoming orders reached a new record of 27.9 billion euros. In doing so, Siemens is benefiting, among other things, from high demand for automation, electrification, and infrastructure technologies, as well as the global boom in the construction of new AI data centers.
- Also the German Telekom was able to deliver a positive surprise. Adjusted EBITDA after leases in the second quarter was around 11.8 billion euros, slightly above market expectations. At the same time, the group increased its share buyback program for 2026 from the original 2 billion to up to 5 billion euros. The stock temporarily reacted to the news with a price gain of nearly 7 percent.
- At SAP In particular, the continued strong cloud figures provided a sense of relief. Currency-adjusted cloud revenue rose by 24 percent to 6.28 billion euros in the second quarter, while the current cloud order backlog increased by 26 percent to just under 23 billion euros. Since the figures were released on July 23, SAP stock has already risen by about 40 %.
However, one should take a closer look at the record numbers. Performance within the DAX continues to vary significantly. Currently, defense companies, beneficiaries of the AI and data center boom, and parts of the financial sector, among others, are performing particularly strongly. The German automotive industry, on the other hand, remains under pressure.
At the same time, there are also cautiously positive signals emerging from the German economy. German industrial production increased for the third consecutive month in June. Exports also rose by 0.9 percent month-on-month to a record high of 139.3 billion euros. In addition, various sentiment and leading indicators for German industry have recently improved.
That is still a far cry from a robust German economic boom. For the stock market, however, the mere prospect of the economic situation at least stabilizing while the profits of many large DAX companies continue to grow is currently enough.
Author Tobias Schmid
Date: 08/17/2026
