Equities across major global markets posted robust returns in 2025, with the MSCI World Index rising 17.3% year-over-year. Technology and consumer discretionary sectors drove momentum, led by companies such as NVIDIA, Microsoft, and Tesla.
- MSCI World Index rose 17.3% in 2025, outperforming other asset classes
- Nasdaq Composite gained 24.1%, led by AI-driven tech stocks
- NVIDIA shares surged 89% on strong demand for artificial intelligence chips
- Emerging markets, including China and India, contributed 15.6% gains via MSCI Emerging Markets Index
- S&P 500 increased 14.8%, with 78% of stocks finishing the year higher
- Global equity ETFs and mutual funds attracted $382 billion in net inflows
Global equities emerged as the top-performing asset class in 2025, delivering broad-based gains amid resilient economic growth and a shift toward artificial intelligence-driven innovation. The MSCI World Index, a benchmark for developed market stocks, climbed 17.3% over the year, outpacing bonds, commodities, and real estate. Emerging markets also contributed significantly, with the MSCI Emerging Markets Index advancing 15.6%, driven by strong performance in China, India, and Brazil. Technology stocks were the primary engine of the rally, with the Nasdaq Composite gaining 24.1%—the highest annual return since 2021. NVIDIA’s share price surged 89% as demand for AI chips remained red-hot, while Microsoft and Apple posted returns of 47% and 39%, respectively. The consumer discretionary sector followed closely, rising 20.4%, supported by robust holiday spending and increased capital expenditures in retail and automotive sectors. Market breadth was strong, with 78% of constituent stocks in the S&P 500 finishing in positive territory. The U.S. equity market, represented by the S&P 500, gained 14.8%, while Europe’s STOXX 600 Index rose 13.2% and Japan’s Nikkei 225 advanced 16.5%. These figures reflect improved corporate earnings, stable inflation, and central banks maintaining accommodative monetary policies through late 2025. Investors benefited from a convergence of favorable macroeconomic conditions, including stronger-than-expected GDP growth in key economies and a gradual moderation in geopolitical tensions. The performance also highlighted the growing influence of AI and digital transformation across industries. As a result, equity-based investment strategies saw increased inflows, with global equity mutual funds and ETFs attracting $382 billion in net new capital during the year.