U.S. stocks are extending their lead over global peers and some investors believe that dominance could grow with the return of President-elect Donald Trump’s economic and foreign policies.
Resilient economic growth and strong corporate earnings, particularly in the technology sector, have widened the valuation gap between U.S. stocks and their global counterparts.
Investors are optimistic about Trump's agenda of tax cuts, deregulation, and tariffs, despite concerns over their potential disruption and inflationary effects.
The dominance of massive technology companies in the U.S. economy, such as Nvidia, Apple, Microsoft, Amazon.com, and Alphabet, contributes to the growth of U.S. stocks.