In a notable shift in market performance, international stocks have outperformed U.S. equities in 2025, marking a significant departure from the previous 16 years where U.S. stocks dominated. As of mid-March, European markets have outpaced U.S. stocks by over 17% in euro terms, driven by substantial spending plans in Germany and the European Union. Year-to-date returns show Poland leading with a 39% increase, followed by China at 27%, France at 25%, and Germany at 23%. In contrast, the S&P 500 has declined by 4%, with U.S. stocks overall down between 2% and 8% depending on the index. This trend represents the largest two-month spread in international stock performance over U.S. stocks since 2008, with international stocks outperforming by 14% in the last two months alone.