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World Markets Review

Stocks rally on AI enthusiasm: Q2 roundup

July 11, 2024

Global stocks rose amid signs of improving economic growth in the United States, Europe and key emerging markets. Major U.S. equity indexes touched another series of record highs throughout the quarter while stocks in China and India rallied. Global market gains were tempered by the uncertainty associated with elections in Europe and India.

Information technology stocks drove markets higher. Investor enthusiasm for artificial intelligence (AI) continued to propel certain tech stocks, particularly makers of advanced computer chips. Within the MSCI All Country World Index, the materials sector declined as some commodity prices softened. Real estate stocks also moved lower.

Global bonds moved moderately lower. The European Central Bank (ECB) cut interest rates for the first time in nearly five years, potentially setting the stage for U.S. central bankers to follow suit. The U.S. Federal Reserve (Fed) kept rates on hold, but futures markets continued to reflect the view that the Fed will reduce rates at least once before the end of the year.

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