When you hear ‘America First,’ your mind probably conjures images of the red, white, and blue waving proudly over Wall Street. But hold your horses, because this year’s global stock market drama is serving us a plot twist we didn’t see coming.

The U.S. stock market isn’t just lagging behind; it’s practically trailing a few laps in a marathon that includes rivals from Mexico City to Paris, and even Hong Kong. While U.S. stocks have been riding a wave in 2025, they have not kept pace with a whopping 7.5% climb in a collective index of 22 other developed economies, yikes! The S&P 500 barely managed a meek 1.7% rise. Sorry, America, but it looks like your stock market swagger took a coffee break.

What’s happening? For starters, global markets have been on an upswing, and the days of U.S. economic exceptionalism are looking a bit tired. High-flying tech stocks have been indulging in overpriced arrogance, and it seems investors are finally waking up to this reality. Critics are raising eyebrows at how prices of many stocks skyrocketed faster than you can say “unrealistic valuation”.

Morgan Stanley’s own Michael Wilson had clients approaching him with existential questions about whether to cast their nets wider, outside the U.S. Why? Because tech stocks from the East, particularly in China, are putting some serious competition on the table. A fresh contender, DeepSeek, has made waves in the AI sphere, showcasing a large language model that could mimic the big U.S. boys but without sending your wallet into a tailspin.

Meanwhile, while the Federal Reserve plays hard to get with interest rates, central banks abroad are being much friendlier. Just a little rate-snipping here and there can make stocks rise like bread in an oven, especially in Europe, where rate cuts were announced earlier this year.

And let’s not forget the currency game! As the U.S. dollar flexes its muscles against others, it’s feeling great to be an exporter abroad. In contrast, U.S. companies like Amazon have been crying over the strong dollar’s bite into their bottom lines, admitting it has taken a painful toll of nearly $900 million off their latest quarter’s revenue. And the forecasts? Brace yourself: an expected $2.1 billion hit in the current quarter alone.

So here we are in 2025, where the glimmering promise of U.S. dominance in the stock market is beginning to lose its shine. Banks and other professionals are starting to question whether good ol’ Uncle Sam really deserves the crown anymore. It might be time to trade that star-spangled banner for something a little less… overhyped.

In the words of Bank of America’s Michael Hartnett: “The recent outperformance for stocks outside the United States may show a peak in investor conviction of U.S. exceptionalism”. I mean, talk about a mood shift! Let’s hope investors are ready for this wild ride into the fiscal unknown!