U.S. stocks are chipping away at Europe’s outperformance, and Powell slipped in this dovish signal on Fed rates that Wall Street overlooked

After President Donald Trump shocked global markets with his aggressive tariffs earlier this year, investors turned away from the U.S. and went elsewhere—but the scales are tilting back again.

U.S. stocks have made furious rebounds, setting fresh record highs and eroding the outperformance that European markets have enjoyed for much of this year.

The S&P 500 is now up 13% year to date and the Nasdaq is up 17%. As recently as late June, when the broad market index had retaken its prior all-time high , both were up 5%.

Meanwhile, the DAX stock market index in Germany is up 19% so far this year, down from 20% in June. Other gauges have gained ground, but not as much as U.S. stocks have. The FTSE 100 in the U.K. is up 13% versus 8% in June. And the MSCI Europe stock index has jumped 25% f