Despite the V-shaped recovery, U.S. stocks still lag behind the rest of the world in 2025

• S & P 500 grown slightly less than 1 % so far this year. However, global stocks have been much better since the White House tariff policy has caused the sale of the market around the world. Since then, stocks in Germany, Brazil and China have witnessed dual growth.

After taking the beating in April, the S&P 500 recovered this week and finally led to my positive for this year. To date, in 2025, trivial returns compared to more than 20 % of gains in the past two years. However, the news was still welcome to investors who hoped to mean that American stocks will not end in a bear year.

Meanwhile, stocks from all over the world outperformed American stocks. Germany led the road with gains of approximately 30 %. Brazil has also seen strong strong returns so far this year. French and Chinese stocks achieved about 18 % until Friday.

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Many declines in the year arose from a sharp drop in stock prices that came in the wake of the tariff policy announced by President Donald Trump on April 2. The market’s reaction was immediately violently when Trump announced the news. Policy has caused a large -scale sale that struck every corner of the United States and indicates a brief but unprecedented deficiency of believing in the American economy. Stock prices fell, bond returns, and the dollar decreased compared to other currencies.

Now, American stocks find themselves forced to form the land they lost during the recession period.

“It looks like one of the unnecessary bear markets that we have absolutely passed,” said Ben Karlson, director of the Institutional Assets Department at Ritholtz Wealth Management.

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Carlson pointed to the fact that American stocks rose after Trump’s election in November 2024. The markets appear to have been able to grow on the expectation that the second Trump administration will reduce taxes and reduce regulations. However, as soon as the definitions of the maximum priority for the Trump policy schedule become, it is dispelled.

“If he has not committed heavily the trade war, I think the stock is likely to be much higher than it is today,” Carlson said.

Invertedly unexpectedly, investors who withdrew their money from US shares resorted to other markets, instead of US Treasury bonds. Over the past few years, the United States has surpassed the rest of the world, but based on the current path of the S&P 500, this trend appears to have ended.

American stocks have been recovered since then from their lowest levels in 2025.

“I think if you would ask anyone a month ago, will we go on a trip and forth? No one said, yes,” Carlson said. “Things look very dark.”

The market’s reaction was very well to the news that USWas had stopped the policy of customs tariffs on other countries. But the United States has significantly identified China, setting 145 % of the fees on its imports, which looked like a trade war between the two largest economies in the world, which increased the issue to enhance the issue to invest in foreign markets isolated from the potential financial massacre. However, delegations from Washington and Beijing gathered in Switzerland last week and announced that they would be declared their tariffs.

Now, the markets are looking for a series of trade agreements with other countries that may restore some stability to the United States so far, the White House has announced a deal with the United Kingdom and said more than ten others in business. On Friday, Trump said on Friday he would be impossible to negotiate deals with each country, and said the definitions were “very fair” would come within weeks.

During Trump’s current visit to many Gulf countries, he also announced many major investments such as Saudi Arabia, Qatar and the United Arab Emirates. The Gulf states have pledged to buy hundreds of billions in the infrastructure of Amnesty International from American companies.

“I still think that despite all the excitement of these episodes that resemble Opera Winfrey, which have been announced in the Middle East, we will not avoid stagnation, albeit, this may be a brief shallow,” said Paul Mix, a long -time technical investor and professor at Baker School in the castle.

Investors still see the American economy swinging between possible stagnation and return to normal life. Reducing fixed tariffs may mean that they will continue to go down. Even if they have their current levels, this will provide companies with some clarity about the form of American commercial policy. On the other hand, more pessimistic investors argue that there are 10 % of the customs tariffs on other countries and 30 % of the customs tariffs on China are still large cost increases that will harm growth and may hinder the stock market.

But the performance of the bad stock market can help avoid the worst results, according to Carlson. He said: “The stock market was the one that forced its hand, and because it decreased very quickly, which caused its decline, which caused the market to recover.”

This story was originally shown on Fortune.com

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2025-05-16 17:15:00