Market commentary
A single-market rising tide fails to lift all stock boats.
Our fourth-quarter market commentary.
A single-market rising tide fails to lift all stock boats.
Global equity markets, as measured by the MSCI ACWI Index, recorded modest losses in U.S. dollar terms over the fourth quarter, but still finished in positive territory for the 2024 calendar year. Strength in the U.S. could not offset downturns in other developed countries and emerging markets, which declined significantly in U.S. dollar terms during the quarter. There was a brief, sharp rally in the U.S. in the first half of November in response to former President Donald Trump’s victory in the presidential election, as investors expressed optimism that the new administration’s proposed tax cuts and loosening of regulations will boost economic growth. All three major U.S. equity market indexes—the Dow Jones Industrial Average, the broad-market S&P 500 Index, and the tech-heavy Nasdaq Composite Index—established record highs during the quarter. Among developed markets, Europe was particularly hard-hit amid concerns about political stability in France and Germany, as well as economic weakness. Emerging-market stocks lost ground due to investors’ concerns about the potential impact of Trump’s proposed tariffs on goods imported to the U.S., as well as disappointment regarding the Chinese government’s fiscal stimulus.
North America, the only region to end the quarter in positive territory in U.S. dollar terms, was the top performer among developed markets, lifted by the rally in the U.S. Conversely, the Nordic countries were the weakest-performing developed markets due mainly to downturns in Denmark, Sweden, and Finland. The significant underperformance of Europe was attributable mainly to weakness in Portugal and Ireland. The Gulf Cooperation Council (GCC) countries led the emerging markets for the month, due largely to strength in the United Arab Emirates and Kuwait, which garnered positive returns for the quarter. The weakest-performing emerging markets for the month included Latin America and the Association of Southeast Asian Nations (ASEAN), hampered mainly by market declines in Brazil and Indonesia, respectively.1
1 All equity market performance statements are based on the MSCI ACWI Index
For professional clients only. Not suitable for retail distribution. All references to performance are in US dollar terms unless otherwise noted. See Standardised Performance for more information.
Important Information
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Positioning and holdings are subject to change. All information as of the date indicated.
This information should not be relied upon by the reader as research or investment advice, (unless you have otherwise separately entered into a written agreement with SEI for the provision of investment advice) nor should it be construed as a recommendation to purchase or sell a security. The reader should consult with their financial professional for more information. Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Nothing herein is intended to be a forecast of future events, or a guarantee of future results.
Connecting investors to what matters most
SEI delivers goals-based advice, customised wealth management solutions, and outsourced investment management programs.
Our perspectives on market challenges and opportunities
This content is restricted. Please confirm you are a qualified professional investor.