President Trump has promised to create an era of American exceptionality with policy that the United States places in the first place, and for other nations.
But Mr Trump's movements in the early days of his administration have had the opposite result for the US stock market.
The S&P 500, which had risen above the stock indexes of other countries for years, is now following large markets in Europe and China, because investors have begun to withdraw money from the United States and to allocate it again all over the world.
Since Mr Trump's inauguration, the S&P 500 has fallen by 6 percent, while the DAX index in Germany has risen by 10 percent and the Euro-wide Stoxx 600 index has won more than 4 percent. Other American indexes have been done even worse because the European markets have been stimulated by plans for military editions on the continent after Mr Trump made it clear that he wants those nations to do more to protect themselves.
The Hang Seng index in Hong Kong has risen further and rose by more than 20 percent since Mr Trump took on in January, driven by the efforts of the Chinese government to stimulate its economy. The IPC index of Mexico, which is focused in its own country and is resilient for Mr Trump's steep rates, is 5 percent higher.
With American markets that are swallowed by the uncertainties about the tariff policy of Mr Trump and deep cuts on the federal government, investment advisers started sending customers to other stock markets around the world.
“It is absolutely time to look at ex-US,” said Jitania Kandhari, deputy Chief Investment Officer of the Solutions and Multi-ASCET Group at Morgan Stanley Investment Management. She said she had noticed an increase in conversations with customers who wanted to increase their exposure to international shares.
Even the global markets that have been packed have succeeded in exceeding the S&P 500. The FTSE All-World Index has fallen by 2.9 percent since inauguration, weighed by shares in the US. The TSX index of Canada has fallen by 2 percent. And the Japanese Nikkei 225 has fallen 3.6 percent.
In recent weeks, Wall Street has broadcast a series of bank research notes, customer presentations and commercial ideas that recommend a pivot point of the United States.
“Respect Resilience, Fade US Exceptionalism and worries about policy shocks,” read the title of one of those presentations by Bruce Kasman, Chief Economist and Global Head of Economic Research at JP Morgan.
Brad Rutan, a market strategist at MFS Investment Management, said he also saw opportunities outside the United States. “It is safe to say that there is now enough room for international shares.”
In the past week, investors have achieved money from funds that buy our shares for the first time this year, according to weekly data that run up to and including Wednesday from EPFR Global. The recording was a modest $ 2.5 billion, which is compared to the inflow of around $ 100 billion in the first nine weeks of 2025.
Although some traders respond exceptionally quickly to new information in the market, others, especially those who expect to be invested for a long time, such as pension funds or university donations, can take months to move their money.
“After such a long-term outperformance of the US versus Europe, these things cannot turn 180 degrees in a month,” says Greg Boutle, head of the US stock and derived strategy at BNP Paribas. “There are probably many investors who have not yet been again assigned.”
If investors continue to get their money from US shares and invest in foreign markets, this could contribute to the sales pressure that the S&P 500 brought to correction last week defined as a decrease of more than 10 percent from his peak.
The American markets are so great that a complete exodus of foreign investors is almost impossible, said Mrs. Kandhari: “But the shift can certainly create market movements.”
The recent withdrawal comes after years when the US stock market was the envy of the world, where foreign investors were looking for higher returns than their home markets could offer.
About $ 420 trillion flowed in funds that buy US shares in 2024, according to data from EPFR Global, which increases large indexes higher and contribute to the growth of a handful of large technology companies. About two-thirds of the valuation of the FTSE All-World Index comes from US shares, with nine of the top 10 shares in the index by size from the United States.
In the year prior to the presidential election, the S&P 500 surpassed many of the other indexes around the world and rose 32 percent. The next best was German Dax, an increase of 27 percent.
Many investors are still bullish about US shares in the long term and believe that they will again surpass foreign shares.
Europe can increase government spending, possibly stimulating growth. But that tree can be powered by a fear of war, not because of sustainable economic strength. And when the United States enters an economic decline, it is unlikely that the rest of the world will be saved from the Fallout.
“I think that in the end all this uncertainty will settle and we will still be lagging behind with a US that has benefits that Europe and other countries do not have,” said Paul Christopher, head of the global market strategy at the Wells Fargo Investment Institute.
Other investors wonder whether the present moment could be the start of a bending point, which increases the long -term trend of the American exceptionality in financial markets.
“I think that discussion is happening,” said Mrs. Kandhari.
