Some people are impressed by the U.S. stock market’s performance this year. Some are disappointed.
The former highlights the S&P 500’s 16% return year to date. Not only is it on track for an above-average gain, but it also follows 23% gains in 2024 and 24% gains in 2023.
The latter points to the rest of the world. Non-U.S. markets have significantly outperformed the U.S. all year.
“Most major equity markets have outperformed the U.S. in 2025 as geographic diversification has, for the first time in many years, benefited investors,” Goldman Sachs’ Peter Oppenheimer wrote on Thursday.
He went on: “Europe, China, and Asia have generated almost double the total returns compared with the U.S. in dollar terms. Specific markets within the broader regions, such as Italy (54%), Spain (73%), and Korea (71%), have been particularly strong. We have also seen many EM markets start to break out on the upside, supported by stronger earnings growth and a tailwind from lower U.S. interest rates and the dollar.“
