Global equity market rally persists

The equity rally that began in late July continued into early August, with major indices in the United States and Europe posting fresh gains. After the S&P 500 reached a new all‑time high of 7,736.52 on 4 August, the German DAX extended its record, breaking 26,400 points. Traders linked the move to optimism over a possible settlement of the Iran conflict, falling oil prices and a renewed technology‑stock rally, while strong earnings from firms such as Fresenius, Siemens Energy, Vonovia, DHL and Infineon reinforced sentiment. The broader German market, including the SDAX, also posted modest advances, reflecting sustained investor confidence in the region’s corporate outlook. On the same day the DAX climbed past 26,200 and the MDAX rose, while the Dow Jones Industrial Average hit a fresh high near 54,300 and the Nasdaq‑100 recorded its best four‑day gain in over a year, driven by the same earnings strength and lower Brent crude around $80 a barrel. The rally remains buoyed by lower energy costs that ease inflation expectations, even as analysts, including Michael Burry, warn that valuations may be approaching correction risk.