The U.S. stock market lags behind dozens of countries, even in a year of record highs

Core Insights - The S&P 500 is on track to underperform compared to global stock indexes for only the second time in a decade, with its annual return placing it 41st among over 60 indexes globally [1][2][5] Performance Analysis - The S&P 500 has recorded annual returns of 16% so far this year, but this performance is significantly lower than many international markets, trailing the MSCI All Country World Excluding U.S. Index by more than 10% [2][4] - The S&P 500 companies have created over $7.7 trillion in market value this year, surpassing the annual economic output of all countries except the U.S. and China [2][3] Market Dynamics - The U.S. stock market remains the leading destination for publicly traded companies, with over 5,400 listings on the NYSE and Nasdaq [3] - The performance gap is attributed to trade uncertainties stemming from tariff policies and the overall economic environment, including rising U.S. debt and a declining dollar [5][6] Sector Performance - The technology sector, particularly driven by AI, is experiencing significant growth, with major companies like Nvidia and Apple seeing soaring market values [10][11] - In contrast, the remaining 493 companies in the S&P 500 are expected to post much lower earnings growth of only 6.7% [11] Global Comparisons - South Korea's Kospi index has emerged as the top performer globally, with nearly 70% returns this year, driven by semiconductor exports and technology sector recovery [12][13] - The weakening U.S. dollar has contributed to the relative underperformance of the S&P 500, as it makes foreign investments more attractive [14][15]