Here's Why Global Stocks are Surging Past the US Market

Investments Jul 21, 2025

Ever pondered why the world is seeing a spirited upswing in stock markets outside the United States in 2025? If you’ve watched the financial news lately, you might have noticed international equities claiming the spotlight with overwhelming performances. According to Investopedia, here’s everything you need to know about this phenomenon and how you can tap into these dynamic markets.

The Global Surge: A Closer Look

In an intriguing twist on the financial stage, global stock markets have outshone the U.S. equities this year. As tech giants like Nvidia and Microsoft continue their climb, the broader U.S. market is not reflecting the same enthusiasm. The S&P 500’s modest gain of 7% is widely eclipsed by the MSCI All-World ex U.S. Index’s hefty 17% rise. What’s fueling this disparity, you ask? Delve into critical factors such as:

Interest Rate Divergence: The U.S. Federal Reserve’s higher-for-longer interest rate policies are creating monetary headwinds.
Valuation Gaps: Overvalued U.S. stocks have driven capital towards the more attractively priced international markets.
Weak Dollar’s Windfall: The declining U.S. dollar has ironically bolstered foreign markets, enhancing the competitiveness of exporting economies.

Historical Performance and Present Surprise

While the U.S. stock market is typically dominant, the tide has shifted in favor of global equities—a shift seen before in 2012, 2017, and 2022. These cycles of global outperformance align with broader economic shifts, including changes in policy, currency value alterations, and strategic sector rotations.

Venturing into Global Investments

Seeing the promise in international markets? Here’s how you can dive in:

American Depository Receipts (ADRs) enable you to invest in foreign companies without the forex hassle.
Global Depository Receipts (GDRs) open up investment opportunities on international exchanges.
International ETFs and Mutual Funds deliver diverse global exposure.
Invest in Multinational Corporations (MNCs) like Apple or Nestlé to indirectly benefit from international growth.

The Road Ahead: Opportunities and Strategies

As we navigate through 2025, the significant gains in international markets prompt investors to rethink strategies. Whether leveraging the current shift or maintaining diversified portfolios, it’s prudent to explore international equities and ascertain the best international brokers for your investment journey. Keep a keen eye on what unfolds globally and how these changes could unlock a treasure trove of opportunities for your portfolio.

In the grand ballet of global finance, seizing the current momentum could be your portfolio’s winning move in these unusual times.