US stocks just capped a record-breaking month, riding a wave of optimism that President-elect Trump's trade policies might not be as extreme as feared. The S&P 500 (SPY, Financial) rose 0.6% on Friday, locking in a jaw-dropping 5.7% gain for November—the best monthly performance this year. Treasury yields dropped, with the 10-year note hitting 4.17%, and the dollar posted its sharpest weekly loss in three months. Investors are throwing cash at US equities like it's Black Friday—$141 billion in inflows over the past month, the largest four-week surge on record. Tech titans led the charge, with Wall Street betting big on rate cuts and steady economic growth to keep the rally alive.
But here's the kicker: while the US stock market is breaking records, the rest of the world looks like it's stuck in neutral. Europe's inflation nudged up to 2.3%, keeping rate-cut bets intact, but the Stoxx 600 barely managed a 0.4% gain for the week. Over in Asia, Japan is grappling with rising inflation and a weakening yen, fueling speculation that the Bank of Japan might finally tighten rates. Meanwhile, global investors are pulling money out of European and emerging markets, leaving the US with an almost unfair advantage. It's clear—the disconnect between Wall Street's optimism and everyone else's caution is growing, and so is America's lead.
What does this mean for you? History suggests betting against US markets is a losing game. The US has dominated global markets for 13 of the past 15 years, and the momentum isn't slowing. With tech giants driving growth and Trump's policies expected to pump even more juice into the economy, it's hard not to feel like this party has room to run. Sure, some strategists warn that Trump's tariff threats could backfire, but for now, the message is clear: the US is where the action is, and the rest of the world is playing catch-up. Investors, stay buckled in—2025 could be another blockbuster year.
