Investing.com -- Global equity markets have climbed 2.3% since the recent US election, supported by positive earnings growth across all regions, according to BofA quantitative strategists.
The MSCI All-Country World Equity Index gained 1.4% last week, rebounding from a 2.3% decline the week prior. The rally was driven largely by the US, which posted a 1.9% gain, while Europe, Japan, and China recorded negative returns.
Sector performance was led by Software (ETR:SOWGn) up 2.6%, and Tech Hardware, which rose 2.4%. Energy also performed strongly, gaining 2.3% as oil prices climbed.
"The best performing global styles last week were Momentum and Risk," the strategists noted.
Still, market breadth remained narrow, with only 38% of stocks outperforming the global index during the week.
US stocks started this week on a high, with the small-cap Russell 2000 reaching a record high on Monday, boosted by lower bond yields following the announcement of Scott Bessent as the next US Treasury secretary.
Investor sentiment was further influenced by discussions of a potential ceasefire between Israel and Lebanon, which led to a drop in oil prices. This weighed on the Energy index, which fell 2%.
President-elect Donald Trump’s long-awaited nomination of Bessent late on Friday alleviated some fiscal concerns. Analysts noted that Bessent could take steps to curb government borrowing while adhering to Trump’s fiscal and trade policy priorities, including tariffs.
The announcement also helped ease market fears over the impact of new tariffs, which had contributed to rising bond yields before the election.
Treasury yields fell sharply on Monday, with the 30-year bond leading the declines, providing additional support to equities.
The Russell 2000 climbed to an intraday record of 2,466.49, surpassing a high set three years ago.