DAX Falls 0.81% Amid AI Boom, Mixed German Earnings

The DAX closed 0.81% lower at 24,065.47 points, despite a strong first half of the year. The AI boom from US giants Microsoft and Meta failed to sustain the market, while mixed results from German corporations and cautious signals from the US Federal Reserve weighed on the market. The MDAX rose 0.21% to 31,004.40 points, and European markets mostly closed lower. The Dow Jones slipped slightly, while the Nasdaq 100 posted moderate gains.

The global financial markets reacted to a mix of signals from the United States and Europe on Thursday, July 2, 2025. The DAX closed 0.81% lower at 24,065.47 points, despite a strong first half of the year. The AI boom from US giants Microsoft and Meta failed to sustain the market, while mixed results from German corporations and cautious signals from the US Federal Reserve weighed on the market. The MDAX rose 0.21% to 31,004.40 points, and European markets mostly closed lower. The Dow Jones slipped slightly, while the Nasdaq 100 posted moderate gains.

In the United States, the Federal Reserve held interest rates steady, dampening hopes of a September rate cut. The decision was widely anticipated and had little impact on the broader market. However, the Federal Reserve's cautious stance may signal a slowdown in economic growth, which could impact global markets [3].

Meanwhile, Meta Platforms (META) reported strong second-quarter earnings, with shares surging 12% after-hours. The company's revenue and earnings per share both exceeded expectations, driven by AI advancements across its ad systems. Meta's AI spending is expected to ramp up significantly in the coming years, with the company aiming for $66–$72 billion in 2025 and even more in 2026 [2].

In the commodities market, gold prices fell Rs 603 per 10 gm after the US Fed held rates steady, dampening hopes of a September cut. Despite the dip, domestic demand and global central bank buying may support prices. Silver also corrected but remains promising due to strong industrial demand [4].

The AI boom from US giants Microsoft and Meta failed to sustain the market, while mixed results from German corporations and cautious signals from the US Federal Reserve weighed on the market. The MDAX rose 0.21% to 31,004.40 points, and European markets mostly closed lower. The Dow Jones slipped slightly, while the Nasdaq 100 posted moderate gains.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TS0S3:0-wheat-down-1-3-cents-corn-down-1-2-soybeans-down-1-2/
[2] https://www.tradingview.com/news/tradingview:1e398274b094b:0-meta-meta-stock-surges-12-on-earnings-beat-here-comes-record-2-trillion-market-cap/
[3] https://www.reuters.com/markets/us/fed-decision-live-updates-trump-pressures-powell-cut-ahead-fomc-meeting-2025-07-30/
[4] https://economictimes.indiatimes.com/markets/commodities/gold-drops-by-rs-603-silver-corrects-too-outlook-remains-positive-ahead/articleshow/123022531.cms