From Tokyo to New York, stock markets are on a record-hitting spree around the world
From New York to London to Tokyo, if there’s one similarity among the world’s equity markets it’s this: record highs.
Of the world’s 20 largest stock markets, 14 have hit all-time highs recently. The MSCI ACWI Index, which tracks developed and emerging markets, has been on a record-breaking run, setting another new high on Friday. In the US, the S&P 500 and Nasdaq 100 indexes hit records this week, while the Dow Jones Industrial Average crossed 40,000 for the first time ever. Meanwhile, the biggest bourses in Europe, Canada, Brazil, India, Japan and Australia are currently at or near their peaks.
Looming interest rate cuts, healthy economies and corporate earnings are driving the activity. And what’s more, there are plenty of potential drivers to keep the rally rolling, such as the $6 trillion sitting in money market funds, while risks remain scarce.
“From a macro perspective, there are no red signals,” said Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, who’s overweight global equities in his multi-asset portfolios. “The cyclical picture is staying strong, and the rally is broadening out.”
US stocks lose steam after Dow hits milestone 40,000 mark
The April pullback in global stocks didn’t last long, as dip buyers consistently showed up. That helps explain why the S&P 500 hasn’t seen a 2% drop in 311 days, its longest streak since 2017-2018. And even Chinese equities, which have been struggling since hitting a high in February 2021, are starting
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