U.S. stock futures rise after U.S.-Japan trade deal; Tesla, Alphabet earnings due
Investing.com -- Global equity markets gained 9.1% in the first half of the year despite significant volatility, with the MSCI AC World Index reaching an all-time high.
Markets started the year strong before dropping 16.3% from February 18 due to concerns about "DeepSeek," potential U.S. tariffs, and recession risks. Following a "90-day pause" on tariffs announced on April 9, global equities rebounded 23.5%, supported by strong U.S. corporate earnings, reduced tensions in the Middle East, and renewed interest in artificial intelligence.
Europe and China were the top-performing regions year-to-date, with gains of 20.7% and 15.5% respectively, while the U.S. market lagged with a 5.6% increase. Among global sectors, Banks led with a 20.8% gain, followed by Telecommunications at 18.9%. Technology Hardware and Consumer Discretionary were the only sectors with negative returns, falling 8.3% and 0.2% respectively.
The MSCI AC World Index has historically reached new all-time highs approximately every 15 days since its inception in 1988, reflecting the average 6% annual growth in earnings per share. Earnings are expected to continue growing in 2025.
In June alone, the MSCI AC World Index rose 4.4% as Middle East tensions eased following a "12-day war." All regions posted positive returns during the month, with Emerging Markets leading at 5.7%. Semiconductors and Media were the strongest sectors, gaining 16.0% and 7.8% respectively, while defensive sectors underperformed, including Consumer Staples (-2.0%), Health Care (+1.4%), Utilities (+1.5%), and Telecommunications (+2.6%).
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