Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

From Tokyo To New York, Stock Markets Are Hitting Unprecedented Highs: Report

Published 18/05/2024, 21:23
© Reuters.  From Tokyo To New York, Stock Markets Are Hitting Unprecedented Highs: Report
NDX
-
UK100
-
US500
-
DJI
-
AXJO
-
GSPTSE
-
BSESN
-

Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.

Stock markets worldwide are reaching record-breaking highs. This unprecedented rally, spanning from Tokyo to New York, has seen 14 of the world's 20 largest stock markets hit all-time highs.

What Happened: The MSCI ACWI Index monitors both developed and emerging markets, and set a new record last Friday.

In the U.S., the S&P 500 and Nasdaq 100 indexes also reached new highs this week, with the Dow Jones Industrial Average surpassing the 40,000 mark for the first time. Major stock exchanges in Europe, Canada, Brazil, India, Japan and Australia are also at or near their peak levels.

Several factors have contributed to this global rally, including potential interest rate cuts, robust economies and strong corporate earnings, reported Bloomberg.

Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told the outlet, "From a macro perspective, there are no red signals. The cyclical picture stays strong, and the rally is broadening out."

U.S. stocks have experienced a $12 trillion rally since late October, with the S&P 500 setting 24 new all-time highs in 2024. This surge is partly attributed to hopes for a robust economy with easing inflation, which could prompt the Federal Reserve to relax monetary policy later this year.

Also Read: Investor Optimism Tested: Navigating 2024 Bond Market's Uncertain Terrain

Another driving factor is the burgeoning enthusiasm for artificial intelligence technology, with companies like Nvidia Corp. (NASDAQ: NVDA), Microsoft Corp.(NASDAQ: MSFT), Amazon.com Inc. (NASDAQ: AMZN) , Meta Platforms Inc. (NASDAQ: META) and Alphabet Inc. (NASDAQ: GOOG) accounting for about 53% of the S&P 500's rise.

European equities are also reaching record highs, propelled by positive economic data and corporate profits.

The pan-European Stoxx 600 Index has risen in five of the last six months, with the divergence in monetary policy from the U.S. likely to be a tailwind for the region's equities.

Soaring commodity prices have boosted the UK's FTSE 100 Index and Canada's S&P/TSX Composite Index to all-time highs.

Japan's Nikkei 225 has seen a 16% increase this year, while India's S&P BSE Sensex is setting records, outperforming China. Australia's S&P/ASX 200 Index also hit a high in late March.

Why It Matters: This global rally signifies a robust economic recovery from the pandemic-induced downturn.

It also underscores growing investor confidence in the global economy's strength and potential for continued growth.

The rally's broad base, spanning multiple sectors and regions, suggests a sustainable upward trend rather than a bubble.

However, investors should remain cautious as market dynamics can change rapidly due to unforeseen events or shifts in economic policy.

Now Read: Financial Markets On Edge As Oil And Gold Prices Could Soar Amid Rising Israel-Iran Tensions

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.