In 2025, European equities have outperformed U.S. stocks, reversing years of U.S. stock market dominance. Despite the U.S. maintaining approximately 70% of the global equity market share—near an all-time high—Europe's share, though near a historic low of around 18%, has shown stronger performance in the year to date. This shift is attributed to a weakening U.S. economic outlook, prompting investors to diversify portfolios toward Europe and the U.K., which has also led to significant strengthening of major European currencies against the U.S. dollar. Additionally, U.S. stock market concentration remains high, with the top 10 stocks comprising about 38% of the S&P 500 market capitalization, the highest in six decades, while the next 40 stocks hold only 22.8%, the lowest on record. Market analysts note that capital flows are heavily influenced by exposure to U.S. assets and the dollar, with expectations of further dollar depreciation amid political pressures on the Federal Reserve.