The S&P 500 index gained 24% in 2023, with a 14% gain since late October in the last trading session. This notable performance in the U.S. significantly contributed to driving global stocks to their strongest year since 2019. The MSCI World Index, representing developed market equities, registered a 22% increase for the year.

A few major technology stocks, known as the "Magnificent Seven" (Apple, Microsoft, Alphabet, Amazon, Tesla, Meta, and Nvidia), played a significant role in driving gains on Wall Street this year. However, the recent rally has expanded beyond these tech giants. The Nasdaq Composite index, dominated by technology, has surged 43% this year, marking its best performance in two decades.

In contrast, London's FTSE 100 has lagged behind both U.S. and European markets, experiencing a modest rise of less than 4% in 2023. The FTSE's composition, with a significant presence of mining groups reliant on the slowing Chinese economy and energy companies exposed to oil prices, has been a drag. Additionally, the UK's relatively persistent inflation rate is anticipated to limit the extent to which the Bank of England can reduce interest rates next year.

The Bloomberg global aggregate index of government and corporate debt has risen by 6% this year. This marks a notable recovery, considering the index was down approximately 4% in mid-October.

The US 10-year Treasury yield, which serves as a benchmark for global financial assets and moves inversely to bond prices, has declined to 3.87% from over 5% in October. This shift is attributed to the ongoing decline in inflation. ∞ALPHA