JPMorgan Chase & Co. and Citigroup Inc. project that European stocks will outperform U.S. equities in 2025, driven by improved economic prospects in the region and a shift in investor appetite. Strategists from these financial institutions anticipate that European equities could deliver their best relative performance against U.S. stocks in at least two decades. This outlook is supported by expectations of stronger corporate earnings in Europe. Despite this, retail investors in the U.S. remain optimistic about American equities. The widening performance gap between European and U.S. markets is predicted to reach record levels this year, according to a Bloomberg survey of prominent Wall Street strategists.