In 2025, the U.S. stock market is still rising, but it has underperformed relative to global peers, with key indexes in countries like Mexico, Paris, and Hong Kong showing stronger gains. An index of stocks from 22 other developed economies has outpaced the S&P 500, indicating a notable shift away from U.S. exceptionalism. This may be partly due to high valuations in the U.S. market, as well as the more aggressive monetary policies adopted by foreign central banks, which are stimulating their markets. Client interest in foreign investments, especially in technology, is also rising.
The U.S. stock market has risen in 2025, but less than indexes in Mexico City, Paris and Hong Kong, marking a shift from previous U.S. dominance.
An index of stocks from 22 of 23 developed economies has risen 7.5%, outpacing the S&P 500’s 1.7%, signaling a potential end to U.S. exceptionalism.
Morgan Stanley strategist Michael Wilson noted increased client interest in foreign markets, particularly tech stocks from China, indicating a possible shift in investor focus.
Central banks outside the U.S. are more willing to cut interest rates, which tends to boost stock prices, contrasting with the Fed's steady stance.
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