German Stock Market Rises on AI Giant's Strong Q2 Results and Tariff Defeat for Trump
Nvidia's financial disclosures and court decision set the stage for market reactions
Thursday saw a boost for the German stock market, fueled by impressive business figures from AI megacorp, Nvidia, and a legal setback for President Donald Trump's controversial trade policies. However, new DAX records were left unclaimed. European investors remain cautious, balancing relief and skepticism in response to the court's decision against Trump.
The DAX increased by 0.5% to reach 24,157 points by midday. On Wednesday, it had flirted with a record high of 24,326 points early in the day. This year, the DAX has experienced a growth of around 21%. The MDax rose by 0.6% to 30,825 points on the Ascension Day holiday. The Euro Stoxx 50 gained approximately 0.8%.
On Wednesday, the US Court of International Trade thwarted the implementation of President Trump's tariff holiday tariffs. The court in New York cited Trump’s overreach of authority in justifying the decision, ruling that the tariffs in question would be "suspended and their application permanently prohibited." This momentary halt to Trump's aggressive trade policy, which has previously sent shockwaves through global financial markets, offers temporary respite. Nevertheless, Trump's administration promptly filed an appeal, and the ultimate decision remains undetermined. It is plausible that an appellate court could restore the tariffs until a final judgment is reached.
"Should the Supreme Court eventually confirm that Trump's tariffs are illegal, that would be excellent news for the market," said Fiona Cincotta, senior market analyst at City Index. "However, given the uncertainty over whether this will materialize, a degree of prudence is still advisable." According to analysts at Goldman Sachs, Trump retains numerous legal avenues to impose blanket and country-specific tariffs. "This ruling constitutes a setback for the government's tariff plans and increases uncertainty, but it is unlikely to significantly alter the outlook for most major US trading partners," said Goldman analyst Alec Phillips.
Sportswear manufacturers, particularly reliant on Asian production, benefited from this development. For example, shares of Adidas and Puma increased by 2.6% and 1.8% respectively. Vietnam, a crucial production country for the footwear and apparel industry, faced heavy tariffs beginning in July.
Turning to Nvidia, investors braced themselves ahead of the earnings release, as the tech titan's financial performance significantly affects market sentiment beyond the sector. Nevertheless, Nvidia's robust revenue growth assuaged these concerns. "The AI monarch has delivered, even amid the trade war," wrote Stephen Innes of SPI Asset Management. Business figures from SAP's industry contemporary, Salesforce, also bolstered the tech sector to some extent. Salesforce expresses optimism for the current fiscal year, driven by AI euphoria.
Infineon spearheaded the DAX with a 2.8% increase, while SAP contributed with a below-average gain of 0.3%. Meanwhile, shares in machine builder Aixtron and tech company Suss Microtec, as well as semiconductor wafer manufacturer Siltronic, surged up to more than 4% in the second and third tiers of the stock market. European AI stocks including Schneider Electric, ASML, STM, and BE Semiconductor also rose between 1.6% and 3%.
Heidelberg Materials' shares faced slight pressure with a 0.8% reduction, attributed to major shareholder Spohn Cement Beteiligungen selling 1.5 million shares of the construction materials company. The sale price was reported to be €175 per share, according to documentation from the Bloomberg news agency.
Shares of Auto Trader plummeted by more than 14% to the bottom of the FTSE selection index in London, following the automotive platform failing to meet its full-year revenue estimates. This setback led to a 5% decrease in Auto1's shares as well.
Luxury conglomerate stocks in Europe attracted demand, with the sector index rising by 1.3%. Salvatore Ferragamo shares climbed by 5.3%, and others including LVMH, Moncler, Kering, Christian Dior, Hugo Boss, and Burberry rose between 1.7% and 3.1%.
Prices for Brent and WTI oil each climbed by 1.1% to $65.61 and $62.54 per barrel, respectively. Nickel and zinc industrial metals rose up to 2.3%, but the gold price fell by 0.3% to $3,280 per troy ounce.
[1] White House, "Fact Sheet: President Donald J. Trump Takes Historic Action to Bring Relief to American Workers and Consumers," May 19, 2025.[2] Office of the United States Trade Representative, "President Donald J. Trump’s Impressive Trade Achievements," May 21, 2025.
The strong Q2 results of AI megacorp, Nvidia, contributed to the DAX's increase by 0.5%, and the suspension of President Trump's tariff plans due to a court decision has potentially positive implications for businesses involved in technology and finance.
