Impressive Q1 for Global Markets as US Optimism and AI Soar

Global stock markets experienced a surge in the first quarter of 2024, with the MSCI index rising 7.7%, marking its strongest performance in five years. Optimism surrounding a soft economic landing in the US and the rise of artificial intelligence drove the gains. Notably, the S&P 500 and Dow Jones indexes recorded their best first-quarter performances in five and two years, respectively.

Global Stock Markets Register Impressive Q1 Performance

Global stock markets concluded the first quarter of 2024 with exceptional gains, driven by optimism about the US economy and the burgeoning field of artificial intelligence. The MSCI index of world shares surged by 7.7%, marking its best quarterly performance in five years.

US Equities Surge

The US stock market played a significant role in the global rally. The S&P 500 Index posted its best first-quarter performance in five years, climbing by 10.2%, while the Dow Jones Industrial Average experienced its strongest first-quarter gain since 2021, advancing by 5.6%. The Nasdaq Composite Index joined the rally with a 9.1% increase.

Bitcoin and Related Stocks Heat Up

Bitcoin, the world's largest cryptocurrency, and related stocks soared throughout the first quarter on the back of growing optimism. Energy stocks led the gains in March.

Gold Regains Luster

Gold prices rebounded during the quarter amid expectations of future interest rate cuts in the US. Silver and other precious metals also exhibited gains.

Cocoa Prices Surge

In the agricultural commodities sector, cocoa prices skyrocketed to $10,000 per ton, more than doubling from $3,000 per ton at the year's start. This surge was primarily driven by supply shortages resulting from poor harvests in West Africa.

Top-Performing ETFs

Bitcoin: Grayscale Bitcoin Trust (GBTC)

Grayscale Bitcoin Trust, the world's largest Bitcoin ETF, surged by 92.5% during the quarter. Investors sought exposure to Bitcoin through this security, avoiding the complexities of directly buying, storing, and safeguarding the cryptocurrency.

Cannabis: Roundhill Cannabis ETF (WEED)

Roundhill Cannabis ETF rallied by 45.1%, reflecting the surge in cannabis stocks amid speculation of a potential reclassification of marijuana. The fund provides exposure to leading US cannabis companies.

Semiconductors: VanEck Vectors Semiconductor ETF (SMH)

The semiconductor sector's growth prospects, fueled by the rise of artificial intelligence applications, drove VanEck Vectors Semiconductor ETF to a 28.7% gain. The fund invests in companies engaged in semiconductor production and equipment.

Worst-Performing ETFs

Natural Gas: United States Natural Gas Fund (UNG)

United States Natural Gas Fund plummeted by 28.2% as natural gas prices declined due to surplus stocks and record-high production levels. The fund provides direct exposure to natural gas prices through futures contracts.

Clean Energy: Invesco WilderHill Clean Energy ETF (PBW)

Invesco WilderHill Clean Energy ETF dropped by 21.9%. The fund invests in companies involved in clean energy and conservation. The decline was attributed to a broader economic slowdown in China, impacting sales of electric vehicles.

Lithium: Sprott Lithium Miners ETF (LITP)

Sprott Lithium Miners ETF, which provides exposure to lithium mining companies, fell by 20.7%. The decrease was prompted by a slowdown in lithium prices due to a broader economic slowdown in China.