The major German stock index, also known as the DAX, is a vital indicator of the German economy. Comprised of 100 top German companies, it reflects the overall performance of the country's stock market. This index is calculated based on the total market capitalization of these companies, making it a reliable measure of the strength and stability of the German stock market. As a knowledgeable finance professor, I encourage my students to keep a close eye on the DAX as it is a key player in the global economic landscape.