The MSCI All Country World Index advanced 2.4% in August, supported by strong corporate earnings, growing expectations of interest rate cuts, and sustained enthusiasm for artificial intelligence, according to Bank of America.
Since hitting a cyclical bottom on April 8, global equities have surged 28.1%. Japan has led the rebound, posting a 6.9% gain in August, followed by Europe at 3.2%. U.S. markets also moved higher, though more modestly, with a 1.8% rise.
Sector performance was mixed. Tech Hardware and Materials topped the global leaderboard in August, climbing 8.3% and 6.9%, respectively. By contrast, Software (-3.8%) and Utilities (-0.6%) ended the month in negative territory.
Regional sector winners were most pronounced in Japan, where Telecom (+19.0%), Energy (+14.7%), and Utilities (+14.2%) delivered outsized gains. Underperformers included Japan Semiconductors (-6.3%), European Software (-5.7%), and Asia Pacific ex-Japan Healthcare (-5.4%).
So far in 2025, Banks stand out as the strongest global sector, up 26.6%. The rally has been powered by European lenders, which have surged 57.6% year-to-date. Telecom (+24.3%) and Semiconductors (+23.0%) follow closely behind. On the weaker side, Healthcare (+2.3%), Tech Hardware (+2.4%), and Consumer Discretionary (+5.0%) have posted only marginal gains.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.