Daily Market Report – May 18, 2026

The international stock markets showed extreme volatility at the start of the week. The German benchmark index DAX (DAX) closed 1.49% higher at 24,307 points after strong fluctuations. The European Euro Stoxx 50 (SX5E) edged up slightly, while the American technology sector trended weaker. The Nasdaq 100 (NDX) was under pressure ahead of the upcoming numbers from NVIDIA (NVDA). At the same time, rising oil prices and the geopolitical escalation in the Middle East weighed on the markets. Brent Crude Oil (UKOIL) rose again above $110 per barrel. In the German market, defense, infrastructure, and defensive quality stocks were in focus. Rheinmetall (RHM) was among the strongest DAX stocks with an increase of over 4%. Traders pointed to higher price targets from analysts as well as the persistently high demand for defense stocks given the geopolitical situation. Deutsche Börse (DB1) benefited from high trading volumes and investors' search for defensive business models. Deutsche Telekom (DTE) was also sought after, remaining in demand as a defensive infrastructure stock. On the losing side were cyclical automotive stocks like Mercedes-Benz Group (MBG) and Porsche Automobil Holding (PAH3), which suffered from economic concerns and higher energy prices. In the technology sector, AI infrastructure remained the dominant theme. Investors positioned themselves ahead of NVIDIA's (NVDA) quarterly numbers, which are considered a central test for the entire AI rally. At the same time, infrastructure and data center stocks like Equinix (EQIX) benefited from the persistently high demand for AI computing capacities. Network infrastructure and fiber optic stocks like Corning (GLW) were also in focus. Despite robust earnings development, nervousness in the technology sector is increasing as expectations for AI companies are now extremely high. In the commodity and currency markets, inflation and crisis concerns dominated. Gold (GOLD) remained stable near its highs, while EUR/USD (EURUSD) traded around 1.16. The rise in oil prices again heightened concerns about prolonged high interest rates. Market participants significantly reduced their expectations for short-term interest rate cuts by the US Federal Reserve. The American benchmark index S&P 500 (SPX) trended slightly weaker, while the Dow Jones (DJI) remained stable.