As of February 20, 2025, U.S. stocks have shown strong performance, with the S&P 500 up 3.8% year-to-date (YTD). In comparison, international markets have outperformed U.S. equities, particularly in Europe, China, and Mexico, where stocks have seen notable gains despite ongoing concerns regarding potential Trump tariffs and inflation. The MSCI China index has increased by 17.2% YTD, while the average U.S. large-cap stock, represented by the $RSP index, is up 15.8% year-over-year (YoY). Meanwhile, the $VEU index, which tracks international stocks, has risen by 12.4% YoY. Analysts suggest that the current price movements in non-U.S. equities may be a catch-up trade, particularly as 10-year Treasury yields have stabilized, allowing for a reassessment of valuations and future opportunities in both emerging and developed markets.