The global stock market in 2024 has seen dominance by momentum and tech leaders, alongside regional nuances in performance.

In 2024, global stock markets have demonstrated noteworthy trends driven by factors such as momentum investing, significant growth in technology sectors, and the dominance of large-cap companies. Investment in momentum stocks—the shares that have continued to perform well—has been a major driver, as indicated by an 18.5% return from the MSCI AC World Index in sterling terms, far outpacing global government bonds, which saw a notable decline. The tech-focused 'Magnificent Seven' companies have continued their market leadership, fuelling growth in developed markets, while emerging markets showed a more muted performance.

Within developed markets, the dominance of tech, large-cap, and growth-oriented investments has remained apparent due to their substantial weight in the MSCI AC World Index. However, there have been exceptional regional performances, with Singapore leading the pack thanks to robust financial sector gains. Other high-performing countries include the US, Israel, and Ireland, while more subdued results were seen in regions like France and Norway. Emerging markets like Taiwan have outperformed, particularly within the tech sector, benefitting from advancements in AI and semiconductor developments, despite sectors like real estate struggling under higher global interest rates.

UK equities have diverged slightly from global trends, with value stocks gaining an upper hand over growth shares. This reflects the UK market's composition, which is more focused on traditional sectors like financials and industrials. Conversely, technology stocks in the UK lagged with minimal growth, further emphasising sector-specific discrepancies. Across the Atlantic, US equities mirrored global trends in rewarding momentum, growth, and technology-focused assets, although the leadership gap between large-cap and small-cap investments narrowed slightly towards the end of the year.

European shares showed less overall growth than their counterparts in the US and Asia, influenced in part by currency factors, but certain sectors such as momentum-focused industries, telecoms, and financials delivered solid returns. Japanese equities, on the other hand, showed marked resilience in the face of global uncertainty, benefiting from increased Bank of Japan interest rates, which buoyed the financial sector and led to impressive outperformance within domestic banks.

Overall, the global stock market in 2024 has been a story of contrasts and specific dominance by tech, growth, and momentum strategies. Certain markets and sectors have seen impressive gains due to favourable conditions, such as aligned fiscal policies or sector-specific tailwinds, while others, particularly smaller companies and real-estate-focused investments in emerging economies, faced headwinds due to macroeconomic pressures.