The year 2025 has cemented its place in financial history, marked by an unprecedented surge in global equity valuations that has driven the worldwide stock market to a record high of over $148 trillion. This milestone is supported by a synchronized rally, with multiple major stock market indices across the globe hitting all-time high records.
Here is a summary of major indices that have recorded new highs so far this year, along with the primary factors fueling their ascent:
American Market Dominance
The U.S. markets have led the charge, with all four major indices achieving record closes. The S&P 500 has repeatedly posted new all-time highs, propelled by strong corporate earnings reports and a perceived “Goldilocks environment” of steady growth. The tech-heavy Nasdaq Composite has soared, driven by an investment frenzy surrounding Artificial Intelligence (AI) technology, which continues to fuel the stock prices of major tech companies. Similarly, the blue-chip Dow Jones Industrial Average has benefited from momentum stemming from positive earnings and the easing of global U.S.-China trade tensions.
Meanwhile, the small-cap Russell 2000 also contributed to the rally, boosted by anticipation of a potential second interest rate cut by the U.S. Federal Reserve, a move that often benefits smaller, domestically focused companies.
Asian Powerhouses
Several Asian markets have seen significant success, driven by regional policy shifts and global economic trends. The KOSPI (South Korea) has notably hit a fresh historic high, surging past the 4,200 mark. This rise is attributed to a combination of factors, including easing US tariff risks and a global reappraisal of South Korea’s industrial and tech champions. A new US-South Korea tariff accord, for instance, provided a significant boost to the shipbuilding sector.
In Japan, the Nikkei 225 has also climbed to new all-time highs, often linked to the favorable global trade environment, strong corporate reforms, and proactive government policies aimed at revitalizing the market and attracting foreign investment.
Elsewhere, the Straits Times Index (Singapore) is benefiting from the general strong rebound in global equities and the easing of trade tensions, which positively impacts its trade-dependent economy.
European Peaks
European bourses have enthusiastically joined the global rally. The FTSE 100 (UK) has hit new intra-day record highs, supported by global investor appetite for large-cap stocks, the strong performance of its mining and pharmaceutical sectors, and expectations of central bank rate cuts.
On the continent, the DAX (Germany) has scaled new all-time peaks, driven by robust quarterly results from major corporations and increased investor confidence in the Eurozone’s economic resilience.
Likewise, the CAC 40 (France) has reached new all-time highs, powered by strong earnings from its luxury and technology heavyweights that have significant international exposure.
The consistent climb of these major indices underscores a global market environment where investors are actively embracing risk, primarily betting on the continued dominance of AI-driven technology and expecting accommodative monetary policy from major central banks. This sustained momentum is the foundation upon which the unprecedented $148 trillion global market valuation has been built.
