Emerging Markets Stock Market Posts Best Quarter Since 2009, Driven by AI Boom

On July 1, the emerging markets stock market achieved its best quarterly performance in 17 years, supported by rising Asian artificial intelligence stocks, withstanding the impacts of the Iran war and rising oil prices. The MSCI Emerging Markets Index rose 0.9% on the last trading day of June; these markets contributed most of the gains this year. The emerging markets stock index increased by 23% in a single quarter, the largest since the second quarter of 2009. Guy Miller, Chief Market Strategist at Zurich Insurance, stated, "The real driver has always been technology spending." He added, "At some point, a new supply-demand equilibrium will form, and the excess profits being gained will fade. However, for now, the significant funds and spending from major U.S. cloud service providers suggest that this rally may still have room to grow."