Global stocks record their best first quarter performance in 5 years

Global stocks recorded their best quarterly performance for the first quarter in 5 years, supported by hopes of a soft landing for the US economy and the artificial intelligence boom.

According to CNBC, the MSCI global stock index rose by about 7.7% this year, the largest gain since 2019. Stocks outperformed bonds by the largest margin in any quarter since 2020.

BofA strategist Steven Suttmayer said that given the duration of previous rises in the stock market, which began in 1950 and 1980 and lasted 16 and 20 years, respectively, the current bull market that began in 2013 is in the middle of the term and could continue for a period ranging between 2029 and 2033.

The S&P 500 index was directly responsible for these gains, as it achieved 22 record closings during the first quarter of 2024.

The artificial intelligence boom contributed to supporting the stock market, as Nvidia stock alone added more than a trillion dollars to the market value in the first 3 months of this year, equivalent to about 5 times the total gains of global stock markets over the same period.

Signs of resilient domestic growth in America helped stocks despite an unexpected increase in inflation in January and February, prompting investors to lower their expectations for the number of rate cuts in 2024.