Record-Breaking Annual Gain for Global Stocks in Six Years
As 2025 draws to a close, global stock markets are on the brink of their most robust annual performance in six years. This surge has been bolstered by the Federal Reserve’s interest-rate cuts and a burgeoning enthusiasm for artificial intelligence companies. The MSCI All Country World Index has seen a 21% gain this year, with just one trading day left, marking the best performance since 2019.
The rally has been widespread. Asian equities are on track for their third consecutive annual gain and their best performance since 2017. U.S. markets have also seen impressive returns:
- The S&P 500 is up by more than 17%
- The Nasdaq Composite has gained over 21%
- The Dow Jones Industrial Average has advanced approximately 14% year-to-date
The AI sector has been a key driver, with major tech companies projecting collective expenditures of $380 billion on data center and infrastructure build-outs in 2025.
Despite facing challenges like trade tensions and tariff concerns throughout the year, markets have shown remarkable resilience. “Global stocks are poised for their biggest annual gain in six years,” confirms investor confidence in AI-driven growth and accommodative monetary policy. Several markets, including Japan and South Korea, have already closed for the year, locking in substantial gains.