The S&P 500 Trails the Global Stock Market by Its Widest Margin Since 1995 as President Trump's Policies Rattle Investors
The Motley Fool
by newsfeedback@fool.com (Trevor Jennewine)February 23, 2026
AI-Generated Deep Dive Summary
The S&P 500 has lagged significantly behind global stock market returns for the first time since 1995, with a year-to-date return of less than 1%, compared to the MSCI ACWI ex U.S. Index's 10% growth. This stark underperformance marks a notable shift in market dynamics, raising questions about the impact of President Trump's policies on investor confidence and economic stability.
Historically, U.S. equities have outpaced global markets, but concerns over trade policies during Trump's second term have contributed to this reversal. Despite recent developments like the Supreme Court overturning many tariffs, global markets, particularly emerging ones, continue to show resilience. Analysts predict that non-U.S. markets may maintain their lead in future years, driven by diverse economic factors and investor sentiment.
This divergence matters for investors as it highlights a potential shift in market leadership. The outperformance of global markets, especially emerging economies, could signal new opportunities and risks for portfolios traditionally weighted toward U.S. stocks. Investors should consider diversification and long-term trends to navigate this evolving landscape effectively.
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Originally published on The Motley Fool on 2/23/2026