US stocks are underperforming compared to their European counterparts as President Donald Trump’s shift in focus towards “America First” has led to a decrease in US involvement in Ukraine.
Meanwhile, European defense spending has increased significantly, with the euro expected to bolster and regional stock prices rising. This development may be remembered as the “Zelensky moment,” referencing the heated Oval Office meeting between Trump and Ukrainian President Volodymyr Zelensky on Friday, which failed to produce a deal on mineral rights.
The surge in European defense stocks is seen as a positive sign for the region’s economy, with analysts noting that increased spending could lead to improved national security and reduced reliance on US support. As a result, investors are flocking to European markets, seeking opportunities for growth in the face of decreased US involvement.
Source: https://www.marketwatch.com/story/u-s-stocks-are-being-trounced-by-europe-as-trump-retreats-from-ukraine-focuses-on-america-first-041eaf3a