Led by tech, S&P 500 outperforming since mid-April

Chart is for illustrative purposes only. Past performance is not necessarily an indication of future results. See index definitions in disclosures below.

The first quarter of the year gave many investors pause about U.S. exceptionalism as other regions outperformed the U.S. stock market, despite higher domestic productivity, greater innovation and the U.S.’ comparatively attractive employment demographics. While the debate over where to invest ensues, the U.S. has resumed its outperformance since mid-April.

In fact, since the S&P 500’s year-to-date low on April 8, the index has advanced 26%, which surpasses the rest of the world by 4.5%.¹ The technology sector has breathed new life into U.S. leadership, with the Magnificent 7 companies up 38% since April 8 and the information technology sector up a significant 45%.²

The new One Big Beautiful Bill Act permits the full expensing of capital expenditures for businesses, as well as write-offs of qualifying research and development expenditures within the first year. Looking ahead, we expect these provisions to increase capital investments and further expand the adoption of artificial intelligence. While tactically cautious as near-term uncertainty persists, we reiterate our positive strategic view on US equities driven by the AI theme.

^1,2 Bloomberg, July 2025.

The S&P 500 Index tracks the 500 largest publicly traded companies representing about 80% of U.S. market capitalization. The MSCI ACWI ex-U.S. Index captures large and mid-cap representation across Developed Markets (DM) countries (excluding the US) and Emerging Markets (EM) countries. The index covers approximately 85% of the global equity opportunity set outside the US. Investors cannot invest directly into any index.

Magnificent-7 comprises seven of the largest technology-centered growth stocks: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

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