Global Stocks Soar: Biggest Annual Gain in Six Years Driven by Fed Cuts, AI

• Global stocks are poised for their biggest annual gain in six years, with the MSCI All Country World Index up 21% in 2025.
• The rally is fueled by Federal Reserve's interest-rate cuts, a surge in artificial intelligence companies, and economic optimism.
• Asian equities are also set for their third annual gain, marking their best performance since 2017.
• Despite strong 2025 gains, investors face elevated valuations and divisions among policymakers regarding future policy easing in 2026.
• US stocks saw a modest decline on Tuesday, even as Fed minutes reinforced expectations for future rate cuts.

Why It Matters: Global stocks achieved their biggest annual gain in six years, fueled by Fed cuts and AI.