Global stock markets post best monthly gains in years, testing sell in May
Updated
Updated · CNBC · May 3
Global stock markets post best monthly gains in years, testing sell in May
11 articles · Updated · CNBC · May 3
Europe's STOXX 600 and DAX had their best month since January 2025, Italy's FTSE MIB rose nearly 9%, and the S&P 500 and Nasdaq saw their strongest month in about six years.
JPMorgan said investors exiting in May have recently missed gains, with the S&P 500 averaging 1.5% in May, 1.9% in June and 3.4% in July over 10 years.
Deutsche Bank said the strategy underperformed buy-and-hold in 25 of 39 years for the Stoxx 600, though upcoming earnings and central bank inflation warnings could still unsettle markets.
If AI adoption slows or energy prices fall, will emerging markets' outperformance quickly unravel, or are these gains more resilient than they appear?
Could the rapid AI-driven transformation in emerging markets create new vulnerabilities, especially in labor markets and political stability, that investors are overlooking?
MSCI Emerging Markets Hits Record 1,561.71 in April 2026 Driven by AI Semiconductor Surge
Overview
In April 2026, the MSCI Emerging Markets Index reached a record high, driven mainly by explosive demand for AI infrastructure semiconductors. Leading Asian chipmakers like TSMC, Samsung, and SK Hynix reported strong revenue growth and committed massive capital expenditures to expand production. Geopolitical tensions from the Iran conflict unexpectedly boosted investor interest in these resilient Asian tech giants, concentrating gains in East Asia, especially South Korea. However, this rally carries risks due to heavy concentration in a few companies and vulnerability to Taiwan-related geopolitical tensions. Additionally, persistent memory shortages and the need for successful expansion plans highlight the importance of execution for sustaining growth amid an ongoing AI-driven semiconductor supercycle.