International equities have raced ahead of U.S. stocks in the first half of 2025, posting their strongest relative showing in a quarter-century. The MSCI World ex-US Index has climbed 17% year-to-date, compared with a 5% advance for the S&P 500, leaving global shares outside the United States up roughly 12 percentage points— the widest first-half gap since 1999. Europe has led the charge: by 27 June the benchmark Stoxx 600 had outperformed the S&P 500 by 16 percentage points in dollar terms, its best relative performance since 2006. The reversal follows a long stretch of U.S. dominance, with American equities having beaten the rest of the world in 13 of the previous 15 half-year periods. Even so, U.S. large-caps remain resilient. After tumbling 20% in April, the S&P 500 recouped the loss and returned to an all-time high in 56 trading days— the fastest rebound on record, surpassing the 59-day recovery logged in 1998. The index still accounts for the bulk of global market capitalization, underscoring its sway even in a year when overseas markets are setting the pace.