Dow, DAX 40 and FTSE/MIB Hit Record Highs as AI Valuation Fears Shadow Rally
Updated
Updated · Investing.com · Jul 7
Dow, DAX 40 and FTSE/MIB Hit Record Highs as AI Valuation Fears Shadow Rally
3 articles · Updated · Investing.com · Jul 7
Summary
Fresh records across the Dow Jones, DAX 40 and FTSE/MIB extended the global equity rally, with the Nasdaq 100 again leading gains after last week’s IBEX high.
AI optimism is facing an early test as Asian tech shares weakened despite Samsung’s better-than-expected second-quarter operating profit, reviving concerns over stretched valuations and heavy spending ahead of earnings season.
Fed policy remains the main macro driver after a disappointing U.S. payrolls report, with investors awaiting Wednesday’s minutes for signs of resistance inside the FOMC to Warsh’s push to downplay forward guidance.
Europe’s policy focus has shifted to September after a July ECB hike fell off the table, while speculation over Christine Lagarde’s possible 2026 exit has lifted attention on potential successors such as Isabel Schnabel.
Currency markets reflected the same policy tension: sterling strengthened before Burnham takes office on July 20, while dollar-yen stayed just below 162 as solid Japanese data supported Bank of Japan tightening bets.