Market Overview Q3 2024: Interest Rates and Market Gains
The global stock market enjoyed steady growth in the 
third quarter, with the MSCI All Country World Index rising by 6.8%—its fourth quarter of positive gains. While markets experienced some ups and downs in August, international stocks outperformed U.S. stocks this quarter. Key players included China, India, and Japan, all of which saw higher returns than the U.S1.
Interest Rates Drop Globally
Central banks in the U.S., the European Union, and the UK lowered interest rates this quarter, providing support to both stock and bond markets. This move by central banks aimed to stimulate economic growth, and investors are keeping an eye on possible further cuts in the future.
Record Levels and Mixed Results for Major Tech Companies
As we move into the fourth quarter, several global market indexes are close to their all-time highs2. Among the top U.S. tech companies, Apple, Tesla, and Meta performed well, adding to global gains. In contrast, Alphabet, Microsoft, Amazon, and NVIDIA faced setbacks, contributing less positively to the overall market.
Growth in Emerging Markets and Sector Highlights
China’s recent economic stimulus boosted emerging markets, making them the best-performing markets of the quarter. Sectors like financials, real estate, and utilities also saw strong gains, while technology and energy struggled due to declines in some major tech companies.
Other Market Trends
Smaller companies generally outperformed larger ones, and value-focused stocks (those considered undervalued relative to their earnings) outperformed growth-focused stocks. However, within the value category, higher-profit companies didn’t fare as well as those with lower profitability.
Sources
1. Non-US stocks refers to developed ex US and emerging markets stocks. Country returns are the country component indices of the MSCI All Country World IMI Index for all countries except the United States, where the Russell 3000 Index is used instead. MSCI index returns are net dividend.
2. Connor Smith, “S&P 500 and Dow Rally to New Highs,” Barron’s, September 19, 2024.
Paul is the founder and CEO of Avion Wealth, LLC. He leads a team of wealth managers in building and executing financial plans for high net worth individuals and families. Contact Avion Wealth to speak with a financial advisor.
