Q1 Capital Markets Review
Global equities (MSCI ACWI Index in USD) declined 3.2% during Q1 with mixed and highly volatile returns across geographies. International stocks performed strongly in January and February buoyed by expectations for global growth expansion, coupled with emerging markets exposure to picks and shovels AI themes (semiconductors in Korea and Taiwan) while US large-cap equities were flat due to technology sector weakness as investors increasingly scrutinized hyperscalers’ massive capex growth plans. However, global markets declined swiftly during March due to the US-Iran conflict and the resultant Strait of Hormuz closure accompanied by surging energy prices (oil prices increased from 60/barrel to 110/barrel with bouts of extreme volatility), significant shipping disruption, and revived inflation concerns. Following the recently announced US-Iran ceasefire, global equity markets have appreciated 5.3% through April 8, 2026, and have clawed back much of the March decline.
