The MSCI All Country World Index rose 2.4% in August, supported by stronger-than-expected corporate earnings, growing anticipation of interest rate cuts, and continued enthusiasm for artificial intelligence investments, according to analysis from Bank of America.
Since bottoming on April 8, global equities have climbed 28.1%, with Japan and Europe setting the pace. Japanese markets advanced 6.9% last month, while European equities gained 3.2%. By comparison, U.S. stocks increased a more modest 1.8%.
Sector performance was mixed. Tech hardware and materials led the global gains in August, up 8.3% and 6.9% respectively. Software stocks lost 3.8% and utilities slipped 0.6%, making them the weakest performers.
Japan stood out across industries, with telecoms (+19.0%), energy (+14.7%), and utilities (+14.2%) delivering the strongest returns worldwide. In contrast, Japanese semiconductor shares fell 6.3%, while European software (-5.7%) and Asia-Pacific ex-Japan healthcare (-5.4%) also underwhelmed.
Looking at the year to date, banks have taken the top spot globally, advancing 26.6% thanks largely to a 57.6% surge in European lenders. Telecom (+24.3%) and semiconductors (+23.0%) followed. On the weaker side, healthcare (+2.3%), tech hardware (+2.4%), and consumer discretionary (+5.0%) have been the laggards of 2025 so far.
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.
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