The shift marks a departure from the previous decade of US equity outperformance. The "Magnificent Seven" US tech stocks have been hit hard, with Tesla, Apple, and Alphabet experiencing notable declines. Meanwhile, European contractors and Chinese tech companies have benefited from government spending and AI developments. US billionaires have faced significant wealth losses, while some Chinese executives have seen gains. Despite the global market rally, analysts caution that a US recession could negatively impact global markets.
Key takeaways:
- US stock markets have declined due to President Trump's economic policies, while European and Asian markets have risen on defense spending and AI hype.
- Investors are shifting from US stocks to haven assets like gold and silver, as well as foreign markets with favorable economic conditions and valuations.
- Tech stocks in the US, including Tesla, Apple, and Alphabet, have suffered significant losses, while European and Asian companies have seen gains.
- The US economic downturn could potentially impact global markets, with analysts warning of a possible worldwide recession if US growth deteriorates further.