The “American exceptionalism” trade, which saw international investors flocking to the US stock market after President Donald Trump’s electoral victory, has taken a hit. Data from Dow Jones shows that global stocks outperformed US stocks by a significant margin during the first quarter of 2025.
Investors had initially been encouraged by Trump’s win, but recent developments have led to a decline in US stocks. The unwinding of popular trades around artificial intelligence and tariff-related uncertainty have contributed to this downturn. Meanwhile, international rivals have soared ahead, leaving US stocks struggling.
This trend suggests that the “American exceptionalism” trade may be losing steam, at least for now. As investors reassess their portfolios, it remains to be seen how this shift will play out in the long term.
Source: https://www.marketwatch.com/story/global-stocks-trounced-the-u-s-during-the-first-quarter-is-american-exceptionalism-in-trouble-ed8e5b55