Global Stock Market Performance 2025
Comparison of U.S. and International Markets (January 1 - December 31, 2025)
S&P 500
+16.4%
U.S. Large Cap
MSCI EAFE
+31.6%
Developed Markets (ex-US)
MSCI Emerging Markets
+30%
Emerging Markets
MSCI ACWI ex-USA
+29.2%
All Countries (ex-US)
Key Insights
- International outperformance: For the first time in years, international markets significantly outpaced U.S. stocks, with MSCI EAFE returning nearly double the S&P 500.
- AI boom went global: Asian tech companies and chipmakers in South Korea (Samsung +130%, Kospi +76%), Japan (Nikkei +26%), and Taiwan (TSMC +46.5%) benefited from AI-related demand.
- Weaker dollar helped: The U.S. dollar index fell 9.4% in 2025, its worst year since 2017, boosting returns on foreign investments for U.S. investors.
- European stimulus: Germany's fiscal stimulus plans provided a boost to European markets, with MSCI Europe up 35.4%.
- Valuation gap: S&P 500 trades at 28x earnings vs. emerging markets at just 17.5x, pointing to potential continued opportunities abroad.