The Dax maintained its trajectory toward record highs on Friday, buoyed by a shift in sentiment following Thursday’s US labor market data.
The softer-than-expected American jobs report alleviated investor concerns regarding persistent inflation and the potential for prolonged high interest rates, providing a tailwind for European equities.
This development marks a continuation of the rally that has kept the German benchmark firmly above the psychological 25,000-point level, a threshold it reclaimed earlier in the week after a brief pullback.
Investors are interpreting the cooling US labor market as a signal that global monetary policy pressures may be easing, reducing the risk of a hard landing while keeping rate-cut expectations alive.
This macroeconomic relief has supported broad-based buying interest across the Dax, with particular strength observed in cyclical and defense-related names.
Rheinmetall and Renk emerged as standout performers, reflecting sustained demand for defense contractors amid ongoing geopolitical uncertainties in Europe.