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Story perspectives

US Stocks Struggle as European Markets Surge Ahead

2/23/2025

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Story summary
  • In early 2025, US stocks lag behind international equities, with the MSCI World Index up 3.6%.
  • European stocks, especially the Stoxx 600, approach record highs due to anticipated fiscal stimulus and growth.
  • A Bank of America survey reveals 76% of fund managers expect further European equity gains, favoring banks.
  • Market stability faces risks from global trade tensions and potential US Federal Reserve rate hikes.