According to a recent report by Goldman Sachs, the US stock market is the largest in the world by a significant margin. With a combined market value of nearly $50 trillion, it surpasses the next biggest market, mainland China, by nearly five times. The chart also reveals that the following three largest stock markets are Japan’s, Hong Kong’s, and India’s.
Earlier this year, the US demonstrated its supremacy in equities when British chip giant Arm opted to list in New York for its highly successful IPO in September, rather than in London.
Goldman Sachs further highlighted the astonishing growth of the US stock market over the past two decades, with a staggering 250% increase. In the early 2000s, its value was only around $15 trillion. This remarkable growth can be largely attributed to constant innovation within the technology sector, which sets the US stock market apart from others. In fact, the tech sector accounts for 28% of the S&P 500, significantly higher than Japan’s 13% and the MSCI Europe index’s mere 7% exposure.
Goldman Sachs commented on the US’s strong track record of innovation, emphasizing its rise to second place in global innovation rankings from number five in 2013. However, the top spot is held by Switzerland, according to the Global Innovation Index.
In conclusion, the US stock market’s dominance and remarkable growth, fueled by the technology sector’s continuous innovation, solidify its position as the world’s leading stock market.
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