DAX Set to Finish 2025 Strong: A Year of Gains and What’s Next for Global Markets
Berlin, Germany – December 29, 2025 – As the final trading days of 2025 dwindle, the German DAX index is on track to deliver its most impressive annual performance in six years. This breaking news comes amidst a generally positive global market sentiment, fueled by advancements in artificial intelligence and evolving expectations surrounding US monetary policy. For investors and market watchers, understanding these trends is crucial as we head into a new year.
DAX Poised for 22% Annual Gain
Despite a muted start to the shortened week following the Christmas holidays, with the DAX currently down 0.1 percent at 24,310 points, the overall outlook remains exceptionally bright. The index is expected to achieve a yearly increase exceeding 22%, a remarkable feat not seen since 2019. While the all-time high of 24,771 points remains within reach, investors are closely watching the December high of just under 24,500 points as a key technical hurdle. Many traders have already “closed their books” for the year, leading to lower trading volumes, according to QC Partners portfolio manager Thomas Altmann.
US Markets Hold Steady at Record Levels
Across the Atlantic, US stock exchanges demonstrated resilience on Boxing Day, maintaining their record highs despite slight declines. The Dow Jones Industrial Average closed Friday at 48,710.97 points (down 0.04%), while the S&P 500 settled at 6,929.94 points (down 0.03%). The tech-heavy Nasdaq 100 experienced a modest dip to 25,644.39 points (down 0.05%). These figures underscore a continuing trend of stability and growth in the US market, even as trading activity slows down during the holiday season.
AI and the Fed: The Driving Forces
Experts point to two primary drivers behind the current market optimism: the relentless innovation in artificial intelligence and the anticipated actions of the US Federal Reserve. “Returns are stable and trading volume is low, but the fundamental themes remain the same,” notes Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. Investors are keenly awaiting the release of the minutes from the Fed’s latest meeting on Tuesday, hoping for further clarity on the future path of US monetary policy. The market is currently pricing in at least two interest rate cuts in the coming year, despite the Fed’s initial indication of only one.
Nvidia Leads the Charge, Defense Stocks Lag
Within the Nasdaq, chip giant Nvidia continues to shine, climbing over 1% after securing a license to technology from AI startup Groq and onboarding key personnel. Rumors of a potential $20 billion acquisition of Groq by Nvidia further fueled investor enthusiasm. However, not all sectors are experiencing gains. Defense stocks – including Rheinmetall, Hensoldt, and Renk – are facing headwinds, falling between 1.5% and 2.5% following positive developments in peace talks between the US and Ukraine.
Gold Reaches All-Time High – A Safe Haven in Uncertain Times
Beyond equities, the price of gold has surged to a record high, exceeding $4,500 an ounce during the holiday period. This rally is driven by a confluence of factors, including geopolitical tensions, robust demand from central banks, and gold’s traditional role as a safe haven asset. Understanding the dynamics of gold as a hedge against economic and political uncertainty is increasingly important for diversified investment strategies.
As 2025 draws to a close, the global market narrative is one of cautious optimism. The DAX’s impressive performance, coupled with the stability of US markets and the ongoing influence of AI and monetary policy, sets the stage for an intriguing 2026. Stay tuned to archyde.com for the latest breaking news and in-depth analysis as these trends continue to unfold, providing you with the insights you need to navigate the ever-changing financial landscape.