U.S. Stocks Performed Well in 2025, but Global Markets Fared Better

U.S. stocks had a stellar 2025, but global markets stole the show.

In Europe, markets received a boost from plans for increased government defense spending and improved prospects for economic growth.

Major indexes tracking stocks outside the U.S., including the MSCI All Country World ex-U.S. Index, gained 29.2% in 2025, handily outpacing the S&P 500’s 16.39% gain, John Towfighi reported for CNN.

The artificial intelligence (AI) boom benefited markets in Asia, where tech companies and chipmakers saw surging demand.

In Europe, markets received a boost from plans for increased government defense spending and improved prospects for economic growth.

A weaker U.S. dollar also provided a tailwind for international stocks. When the dollar weakens and other currencies strengthen, investments denominated in those currencies become more valuable when converted back into dollars.

The U.S. Dollar Index, which measures the dollar’s strength against six major currencies, fell by roughly 9.4% in 2025 — its worst annual performance since 2017.