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#USGDPUpdate
#USStocks have been eclipsed by market gains in the rest of the world in 2025, as worries about high valuations, a Chinese artificial intelligence breakthrough and #DonaldTrum ’s radical economic policies contributed to a rare year of underperformance for Wall Street.

The S&P 500 was up 17.4 per cent this year when US markets closed on Monday, undershooting the 29 per cent gain for the MSCI All Country World ex-US index by the widest margin since the global financial crisis in 2009.

Wall Street’s AI boom has powered a rebound from the sell-off sparked by Trump’s “liberation day” #Tariffs blitz in April.

But the lingering effects of the president’s trade war — as well as anxieties over sky-high US tech valuations — have led many investors to question the dominant position in global portfolios long enjoyed by US stocks.

#AsianStocks markets have been among the strongest performers, buoyed in part by Chinese start-up DeepSeek, which raised the prospect of serious competition to US AI with its large language model breakthrough in January.

The MSCI China is up 29 per cent, while Hong Kong’s Hang Seng has climbed almost 28 per cent.

US chipmaker Nvidia dropped 17 per cent on a single day following the release of a DeepSeek model whose performance rivalled those of US competitors but at a lower cost, prompting investors to question whether vast investment in AI infrastructure was necessary.

Although Nvidia stormed back to become the world’s first $5tn company in October, nagging doubts about AI valuations have hit the US market, fuelling a sharp November sell-off.