DAX Hits Record High – Oil Price Decline and US Jobs Data Boost Markets

Falling oil prices also buoyed the stock market. The initial trigger came from the drop in oil prices, which was attributed to hopes for progress in Iran-US talks. The prospect of a negotiated solution in the Iran conflict caused the previously surging oil prices to fall again on Thursday.

Oil Prices and Iran Talks as Drivers

The leading index for the euro region, the EuroStoxx 50, also jumped 1.2 percent to a record high of around 6,370 points. The MDAX closed 1.52 percent higher at 32,544.86 points.

Bayer, Deutsche Bank and Rheinmetall Lead the Way

At the top of the DAX, Bayer shares led the way, climbing nearly nine percent to rise significantly above the 50-euro mark for the first time in nearly three years. The background was the bundling of its US business with the controversial herbicide glyphosate into a separate subsidiary called Ruveon. Deutsche Bank also issued a buy recommendation for the stock. Deutsche Bank shares themselves rose 5.3 percent after Morgan Stanley named the bank a favorite among European investment banks ahead of the upcoming second-quarter earnings season – alongside Barclays.

Rheinmetall shares traded back above 1,100 euros thanks to a 6.1 percent gain, after having slumped to 900 euros the previous week due to a lost major contract. Vonovia jumped six percent because a reform package from the German government includes the intention to prohibit the nationalization of private rental housing stocks. A JPMorgan expert described this as "sehr positiv" amid an expropriation debate in Berlin.

In the MDAX, shares of CTS Eventim, up eight percent, were mixed in with the strong defense stocks RENK, TKMS (TKMS thyssenkrupp Marine Systems) and HENSOLDT. Citing a low valuation and improved earnings momentum, investment bank Oddo BHF raised its recommendation for the event marketer to "Outperform".

DAX Decoupling from the Economy

Birgit Henseler, Senior Analyst at DZ Bank, sees the DAX increasingly decoupling from the domestic economy: "Bemerkenswert ist, dass sich der Dax immer mehr von der heimischen Wirtschaftsentwicklung abkoppelt". DAX companies generate around 80 percent of their revenue abroad. Back in 2025, the DAX had already gained 23 percent – its best year since 2019.

Despite this strength, the economic backdrop in Germany remains rather subdued: Leading institutes have lowered their growth forecasts for Germany. In addition, US technology exchanges continued to correct – while the NASDAQ 100 continued its correction in New York, Wall Street blue chips provided support for European exchanges.

Losers: Chip Stocks and HOCHTIEF

Infineon, by contrast, suffered from weakness in chip stocks: Among German chipmakers, Infineon shares were the biggest DAX losers, falling two percent. The background is reportedly discussed considerations by social media group Meta Platforms to sell excess computing capacity to external customers. Shares of construction group HOCHTIEF also lost nearly two percent, after having risen until early May as a celebrated beneficiary of data center construction.

According to analyst Tobias Basse of NordLB, the weak US jobs report clearly eases the rate hike pressure facing the new Fed chief Kevin Warsh. "Er kann damit einfacher auf Zeit spielen und auf freundlichere Inflationsdaten warten", so Basse.