The US underperforms as European stocks surge

US stocks were underperforming compared to their European counterparts long before President Trump’s trade measures. In the first quarter of 2025, Morningstar’s Europe Index was up, and its US market index was down; these performance trends have continued. After a lacklustre decade, Europe is appealing to investors’ desire for value. The Stoxx Europe 600 index is expected to report a rise in first-quarter earnings, surpassing expectations. Additionally, defence spending is projected to increase, with the European Commission anticipating large investment over the next four years. But, as optimism...