Global Stock Markets Surge Past 200-Day Moving Average: 94% Rally Above Key Level

At year-end 2025, financial markets witnessed a remarkable rally with nearly 94% of global equities trading above their 200-day moving average—a technical milestone approaching the highest level seen in five years. This momentum reflects the extraordinary appetite for equities that defined the closing months of 2025.

Moving Averages Signal Strengthening Market Momentum

The technical indicators paint an impressive picture. Per analysis by The Kobeissi Letter, approximately 87% of markets covered by the MSCI All Country World Index (ACWI) are currently trading above their 50-day moving average, marking the highest level since July 2025. When a majority of global equities sustain positions above both the 50-day and 200-day moving averages, it typically signals robust underlying strength and sustained institutional buying.

The ACWI Index encompasses 23 developed markets and 24 emerging markets, representing roughly 85% of investable equities worldwide. For the full year 2025, ACWI delivered +21.6% returns, positioning itself for a third consecutive annual gain—a testament to the broad-based rally spanning developed and emerging economies.

International Markets Outpace U.S. Equities by Historic Margin

Perhaps the most striking development: the MSCI All Country World Index (ex-U.S.) outperformed the S&P 500 Index by 12 percentage points, the largest performance gap recorded since 2009. This divergence suggests international markets are gaining newfound investment conviction, with emerging economies particularly benefiting from renewed capital flows.

The combination of elevated above-200-day moving average readings, strong year-to-date performance, and international outperformance underscores a market environment of historic proportions—one where global equity appetites are firing on all cylinders.