Global stocks fell sharply as rising inflation, higher interest rates and the war in Ukraine combined to push the U.S., Europe and Japan into bear market territory. Slowing global economic growth and fears of a potential recession further weighed on markets, accelerating a broad selloff that commenced shortly after the start of the year.
Bond markets tumbled around the world as the Federal Reserve, the Bank of England and many other central banks moved to tighten monetary policy. With inflation rising to levels not seen since the 1980s, the Fed increased its key policy rate by 50 basis points in May, then 75 basis points in June — the largest single rate hike by the U.S. central bank since 1994.
All sectors of the MSCI ACWI (All Country World Index) declined, underscored by steep losses among information technology and consumer discretionary stocks. Many leaders of the prior bull market — including Apple, Amazon and Microsoft — were among the largest detractors in the index. Energy and consumer staples stocks held up relatively better, though both sectors fell during the quarter.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
MSCI indexes are free-float-adjusted, market-capitalization weighted indexes. Developed market index results reflect dividends net of withholding taxes. Emerging market index results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. Each index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes. MSCI All Country World Index (ACWI) is designed to measure results of more than 40 developed and emerging equity markets.
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