FRANKFURT (dpa-AFX) - The Dax stabilized on Thursday following its mid-week slump. Sentiment was bolstered by a retreat in oil prices, fueled by hopes of a ceasefire in Lebanon. However, the Artificial Intelligence (AI) rally showed signs of stalling. In the U.S., Broadcom, a major player in the AI space, provided an outlook that failed to fully convince investors, weighing on semiconductor stocks domestically. Meanwhile, the situation regarding the conflict in Iran remains opaque.

Supported by significant gains in heavyweight SAP, the German benchmark index briefly crossed the 25,000-point threshold. It ultimately closed up 0.60 percent at 24,944.95 points. The MDax, which tracks mid-cap companies, edged up 0.2 percent to 32,801.61 points.

On one hand, AI euphoria across the Atlantic is driving speculative interest, while on the other, monetary policy uncertainty and geopolitical risks are keeping investors in check, noted analyst Timo Emden of Emden Research. He added, 'Between the AI gold-rush sentiment and Middle East risks, investors are still searching for their North Star.' Although the Dax is once again testing the 25,000-point mark, the foundation remains fragile. Amid headlines regarding the Iran conflict and the AI frenzy on Wall Street, Emden believes investor sentiment remains caught in a tug-of-war between geopolitical risks and tech optimism./la/he