European stocks have shown remarkable resilience and growth in early 2025, with the Euro Stoxx 50 index rising by 1.4% on March 3, 2025, while the S&P 500 declined by 1.8%. As of March 5, 2025, European shares are up nearly 9% this year, reaching record highs, contrasting sharply with the S&P 500's slight drop of 0.5% for the same period. The Vanguard FTSE Europe ETF ($VGK) has recorded an impressive 45-session relative rally against U.S. stocks, marking the best performance of this century, with a 17 percentage point advantage. Notably, Germany's stock performance has been strong, with the Germany ETF ($EWG) nearing its best week since November 2022. The overall performance in Europe has been characterized by significant gains across major markets, including Germany (+21.15%), Italy (+18.71%), France (+17.08%), and the UK (+11.86%), despite concerns over economic conditions and tariffs. The trend indicates a shift in investor sentiment towards European equities, which may signal a reversal of the long-term downtrend observed in previous years.