2025 Asset Class Gains: Market Rally Update
- Investor sentiment is showing signs of recovery, with foreign stocks in developed markets leading the charge in exchange-traded fund (ETF) gains.
- stocks have also bounced back into positive territory, their gains remain modest.
- The Global Market Index (GMI),a benchmark for multi-asset-class portfolio strategies,has increased by 4.3% this year.
Foreign stocks are dominating in 2025,outpacing all other investment classes. The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) has soared by an impressive 14.5% year-to-date. However, although US stocks are rebounding, their gains are far more modest, adn this disparity shapes the current market rally update. Adding complexity, Moody’s has downgraded the U.S. credit rating, due to ballooning deficits and congressional inaction. the Global Market Index (GMI) has risen 4.3%. Stay informed wiht insights from News directory 3.This pivotal shift in the ETF landscape demands attention and offers a dynamic view of global markets,and the potential impacts on your portfolio.Discover what’s next.
Market Sentiment Improves as Foreign Stocks lead ETF Gains
Updated may 28, 2025
Investor sentiment is showing signs of recovery, with foreign stocks in developed markets leading the charge in exchange-traded fund (ETF) gains. The Vanguard FTSE Developed Markets Index Fund ETF Shares (VEA) has surged 14.5% year-to-date, outperforming all other asset classes.
While U.S. stocks have also bounced back into positive territory, their gains remain modest. The Vanguard Total US Stock Market ETF (VTI) is up 1.3% after a significant drop in April.
The Global Market Index (GMI),a benchmark for multi-asset-class portfolio strategies,has increased by 4.3% this year. This recovery suggests investors are becoming more cozy with tariff risks, though uncertainty persists regarding the trade war’s resolution.
Adding to market concerns, Moody’s recently downgraded the U.S. credit rating, citing the growing federal budget deficit and congressional inability to curb spending. A recent Republican spending bill is projected to increase the deficit by nearly $3 trillion through 2034, according to The Wall Street Journal.
“What Moody’s sees,plain and simple,is that the ballooning debt is not being addressed,” said george Lagarias,chief economist at Forvis Mazars,a tax and accounting consultancy. “The Republican mega bill is also contributing to rising yields.”
What’s next
Investors will closely monitor market reactions to the Moody’s downgrade and any developments in trade negotiations. Fiscal policy debates are also expected to influence market sentiment in the coming weeks.