Key Takeaways
- • MSCI Inc.'s global momentum index has outperformed the MSCI All Country World Index by 17 percentage points since end-March 2026, marking the strongest two-month outperformance streak since Bloomberg records began in 1991.
- • The momentum surge is driven by AI-led equity rallies, with approximately 94% of ACWI markets trading above their 200-day moving averages near historically elevated levels.
- • The MSCI All Country World Index is up approximately 20% year-to-date in 2026, positioning the global bull market on track for its best annual performance in recent history.
- • Historical data shows the MSCI World Momentum Index has generated positive returns in 60% of months between 1994 and 2026, with April 2026 among its strongest performing months on record.
Summary
MSCI Inc.'s global momentum gauge is experiencing unprecedented outperformance relative to broad market indices, driven by the current artificial intelligence-led equity rally. Since the end of March 2026, the momentum index has beaten the MSCI All Country World Index by 17 percentage points, positioning it on pace for its strongest two-month outperformance on record, according to Bloomberg data compiled since 1991.
The breadth of the current rally underscores the magnitude of market momentum. Approximately 94% of all MSCI All Country World Index markets are now trading above their 200-day moving averages, a level near historical highs that indicates exceptionally widespread market participation across developed and emerging economies. This synchronized global strength has lifted the broader ACWI to approximately 20% year-to-date gains, putting 2026 on track for one of the best annual returns in the index's history.
The MSCI World Momentum Index, which emphasizes stocks with high price momentum while maintaining reasonable diversification across 23 developed markets, has demonstrated particularly strong performance in this environment. Historical records show the index has generated positive returns in 60% of the 382 months between 1994 and 2026. April 2026 ranks among the index's best-performing months on record, reflecting the accelerated pace of momentum-driven equity flows driven by artificial intelligence sector strength and related technology outperformance.
The confluence of broad market participation, AI-driven sector rotation, and record momentum outperformance suggests investors are heavily positioned in growth and momentum strategies. This dynamic has created an environment where price-momentum-based investing has significantly outpaced traditional market-cap-weighted approaches, a phenomenon not observed to this magnitude since the momentum index began tracking historical performance in 1991.
The breadth of the current rally underscores the magnitude of market momentum. Approximately 94% of all MSCI All Country World Index markets are now trading above their 200-day moving averages, a level near historical highs that indicates exceptionally widespread market participation across developed and emerging economies. This synchronized global strength has lifted the broader ACWI to approximately 20% year-to-date gains, putting 2026 on track for one of the best annual returns in the index's history.
The MSCI World Momentum Index, which emphasizes stocks with high price momentum while maintaining reasonable diversification across 23 developed markets, has demonstrated particularly strong performance in this environment. Historical records show the index has generated positive returns in 60% of the 382 months between 1994 and 2026. April 2026 ranks among the index's best-performing months on record, reflecting the accelerated pace of momentum-driven equity flows driven by artificial intelligence sector strength and related technology outperformance.
The confluence of broad market participation, AI-driven sector rotation, and record momentum outperformance suggests investors are heavily positioned in growth and momentum strategies. This dynamic has created an environment where price-momentum-based investing has significantly outpaced traditional market-cap-weighted approaches, a phenomenon not observed to this magnitude since the momentum index began tracking historical performance in 1991.
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