Economic Pulse: U.S. Stocks Drive MSCI World Index to New Heights, but at What Cost?

With the U.S. Equities claiming two-thirds of MSCI Weighting, it begs the question of whether the MSCI World Index is truly global

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The MSCI All Country World Index (ACWI), a widely followed benchmark for global equity markets, has reached unprecedented highs in 2024. The surge is driven primarily by the outsized influence of U.S. stocks, which now make up nearly two-thirds of the index. This marks a significant increase from a decade ago, when U.S. stocks accounted for just half of the global stock market, as reflected in the MSCI All-World Index weightings.