Global equities rallied amid strong corporate earnings and solid economic growth in developed markets. U.S. stocks hit a series of new record highs during the quarter. Emerging markets stocks, on the other hand, were generally flat to negative, hurt by a strong U.S. dollar, higher interest rates and worries about global trade tensions.
Health care stocks generated the highest returns, boosted by rising profits at major drug manufacturers in the U.S. and Europe. Information technology stocks also advanced on impressive earnings from Apple, Microsoft and other U.S. tech giants. The real estate sector declined, pressured by rising interest rates, and basic materials stocks were essentially flat.
Equity Index Returns (%)