How big is the US financial market?
🇺🇸 U.S. Data as of Q2 2023. Numbers may not total 100 due to rounding. Today, U.S. equity markets total over $46.2 trillion in market capitalization.
With the largest financial market in the world, the U.S. is setting trends and profiting from today's strong global economy. In 2022, the estimated revenue of the industry was US$4962 billion.
Countries with largest stock markets globally 2023
In 2024, stock markets in the United States accounted for roughly 60 percent of world stocks. The next largest country by stock market share was Japan, followed by the United Kingdom.
The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 44.9% of the $109.0 trillion global equity market cap in 2023, or $49.0 trillion. This is 3.9x the next largest market, the EU.
The New York Stock Exchange (NYSE) is the largest stock exchange in the world, with an equity market capitalization of over 25 trillion U.S. dollars as of December 2023. The following three exchanges were the NASDAQ, the Euronext, and the Shanghai Stock Exchange. What is a stock exchange?
Industry | Share of GDP |
---|---|
Finance, insurance, real estate, rental, and leasing | 20.7% |
Professional and business services | 13% |
Government | 11.4% |
Manufacturing | 10.3% |
Total assets of banking sector in select countries worldwide 2022. In 2022, China had the largest banking sector, with financial assets worth more than 47 trillion U.S. dollars.
- New York Stock Exchange.
- NASDAQ.
- Tokyo Stock Exchange.
- Shanghai Stock Exchange.
- Hong Kong Stock Exchange.
- London Stock Exchange.
- Euronext.
- Shenzhen Stock Exchange.
The foreign exchange market or forex market is the market where currencies are traded. The forex market is the world's largest financial market where trillions are traded daily.
The TIC data suggest Chinese investors held $245 billion in equity securities and $24 billion in debt securities issued by US corporations, plus another $1.2 trillion in US government securities at the end of September 2020.
What percentage of the world stock market is the US?
The world has witnessed a formidable rise in global equity markets since 2003, reaching a staggering total market capitalisation of $109 trillion in 2023. The U.S. reigns supreme, holding a 42.5% share of this massive market, significantly outpacing the European Union, its nearest competitor.
In the report, Wilson, chief U.S. equity strategist at Morgan Stanley, chalked up stocks' strong performance over the past year to a combination of improving liquidity, driven largely by the ongoing drain of assets out of the Fed's reverse-repo facility, and unusually heavy deficit spending, which has helped boost ...
The value of global domestic equity market increased from 65.04 trillion U.S. dollars in 2013 to 98.5 trillion U.S. dollars in 2022. As of July 2023, the total market capitalization of domestic companies listed on stock exchanges worldwide recorded as 112 trillion U.S. dollars.
The richest Americans own the vast majority of the US stock market, according to Fed data. The top 10% of Americans held 93% of all stocks, the highest level ever recorded. Meanwhile, the bottom 50% of Americans held just 1% of all stocks in the third quarter of 2023.
1. New York Stock Exchange (NYSE), USA. New York Stock Exchange (NYSE) is the world's largest stock exchange located at 11 Wall Street, New York City, USA. NYSE has a market capitalisation of $26.2 trillion (world's biggest stock exchange) and has more than 2400 companies listed.
Market cap relative to GDP
The US's market cap to GDP share hovers at about 170%, while the figure for the rest of the world not including the US is at about 60%.
- Health & Medical Insurance in the US. ...
- Pharmaceuticals Wholesaling in the US. ...
- New Car Dealers in the US. ...
- Life Insurance & Annuities in the US. ...
- Public Schools in the US. ...
- Gasoline & Petroleum Wholesaling in the US. ...
- Retirement & Pension Plans in the US.
The global financial services market grew from $25848.74 billion in 2022 to $28115.02 billion in 2023 at a compound annual growth rate (CAGR) of 8.8%. The financial services market is expected to grow to $37484.37 billion in 2027 at a CAGR of 7.5%.
Like most other developed nations, the U.S. economy is largely based on services. Service-based industries, including professional and business services, real estate, finance, and health care, make up the bulk (70%) of U.S. GDP.
Where is the financial hub of the world?
New York, ranked first in the Global Financial Centres Index, is frequently regarded as the world's preeminent financial center. It also consistently ranks as the world's wealthiest.
Rank | City | Country or Territory |
---|---|---|
1 | London | United Kingdom |
2 | New York | United States |
3 | Singapore | Singapore |
4 | Hong Kong | Hong Kong |
Day traders commonly choose the forex market for its low barriers to entry as well as exchange-traded funds. Long-term investors are often attracted to the commodities market and the market for contracts for difference.
The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.
Stocks, futures, currency, and gold are among the most popular and profitable trading instruments. All of these financial products provide variable returns. In fact, any product that provides liquidity is well-liked by investors. Traders take advantage of these products volatility to buy cheap and sell high.