For seven consecutive days, the German stock index has set one record high after another. But now, after such a rapid rally, the DAX seems to be running out of steam this week. On Monday, the barometer closed with a minimal loss of 0.1 percent. The trend continued on Tuesday, with the barometer hovering around 17,700 points, after reaching a new record high of 17,816 points last Friday. Since the beginning of the year, the DAX has gained nearly 6 percentage points.

Will Powell live up to investors‘ expectations? From the perspective of stock market experts, there are several plausible reasons why investors are now withdrawing to the sidelines. In addition to profit-taking after the spectacular upward movement, there are once again the eagerly awaited statements of US Federal Reserve Chairman Jerome Powell on the agenda this week, which are keeping market participants on edge.

Hearings before Congress begin on Wednesday. In addition, the European Central Bank will announce its latest interest rate decision on Thursday. Market participants are expecting that the currency watchdogs in Europe will leave interest rates unchanged at 4.5 percent for the time being, but are hoping for indications of the future direction. With regard to consumer prices, a decrease in inflationary pressure can be observed, but price increases are still above the target of 2 percent that the ECB has set for price stability. A countermove in terms of interest rate policy therefore seems not unrealistic, but probably not until the summer.

Market participants are hoping for the first interest rate cut from the US Federal Reserve in June. If Powell now expresses himself differently before Congress this week, it could have a significant impact on short-term stock market activity.

Setbacks also on Wall Street: Apple stock in the red For now, the air seems to be out not only for the DAX. The stock market week also started cautiously on Wall Street. Among other things, a sharp drop in the stock price of Apple dampened the mood: Investors fear long-term negative effects due to increasing regulatory measures after a new competition penalty from the EU Commission.

In addition, significant declines in sales in China are weighing on the mood of investors, where the iPhone sold significantly worse in the first quarter than in the previous year, while competitor Huawei was able to gain market share with its smartphones.

Lufthansa in focus It will also be exciting for Lufthansa this week: This evening, the German stock exchange in Frankfurt will decide whether the traditional airline will return to the first DAX league or not. The main question will be whether Lufthansa can hold its own against Zalando: The relegation candidate was able to gain significantly recently – whether this is enough for a place in the prestigious DAX-40 will be seen.

In addition, Lufthansa will present its latest annual report this week, as will numerous other companies from the DAX family. Bayer already presented its 3 billion euro annual loss on Tuesday, and on Wednesday, the DHL Group and Symrise will open their business books. On Thursday, it will be Lufthansa’s turn, along with Merck, Brenntag, Continental, Gea, and Hugo Boss, as well as numerous other DAX and MDAX companies.