DAX Drops Below 24,000 as US Politics Spark Market Concerns
The DAX has taken a significant tumble, dropping below the psychologically important 24,000-point mark. This comes as investors worldwide express concerns about US politics and trade policies, with renowned hedge fund billionaire Ray Dalio warning of a potential debt-induced crisis in the USA. The DAX has since recovered slightly but remains below the previous day's level.
The DAX started the day on a negative note, slipping below its 50-day line and hitting a new daily low of 23,663 points, a 1.53 percent decrease. This downward trend is partly attributed to profit-taking and pressure from weak US markets, which were closed for 'Labor Day' yesterday and are expected to open lower today.
September has historically been an anxious month for the stock market, with sharp corrections often occurring. Dalio's stark warnings about the US political climate and potential debt crisis have further fueled investors' worries. If the DAX continues to drop, it could face more than five percent downside potential. Technical support levels are around 23,480, 22,458, and 22,280 points.
The DAX's performance today reflects broader global concerns about US politics and their impact on markets. While the index has recovered slightly from its midday low, it remains below the previous day's level. Investors will be watching closely to see if the DAX can stabilize or if it will continue its downward trend, potentially testing the identified support levels.
