Global turmoil cannot dampen confidence, US stocks attract $154 billion, surpassing half of the global market
As of now, the U.S. stock market has attracted $154 billion in capital inflows, setting a record high since 2001 and accounting for more than half of the total global stock market inflows in 2025. Despite global uncertainties, investor confidence in the U.S. economy remains strong, primarily benefiting from factors such as falling inflation, a robust labor market, and solid corporate earnings. Goldman Sachs pointed out that the scale of this capital influx is rare, demonstrating the attractiveness of the U.S. market
According to Zhitong Finance APP, in 2025, the U.S. stock market is experiencing an unprecedented influx of capital. According to Goldman Sachs, as of now, $154 billion has flowed into the U.S. stock market, the highest figure since 2001. More notably, this amount has surpassed half of the total $256 billion that has flowed into global stock markets so far in 2025, highlighting the attractiveness of the U.S. stock market.
Karthik Jaya Chandran from Goldman Sachs pointed out that such a large-scale influx of funds is rare. Amid increasing global uncertainty, geopolitical tensions, and trade issues, investors still maintain confidence in the U.S. economy and are pouring funds into the U.S. stock market.
The optimistic sentiment among investors is driven by the following factors:
Cooling Inflation: The inflation situation in the U.S. has shown significant improvement, dropping from nearly 9% two years ago to about 3.2% currently. The decline in inflation has alleviated investors' concerns about an overheating economy and has eased corporate cost pressures, thereby boosting market confidence.
Strong Labor Market: The U.S. labor market remains robust, with ample job opportunities and a low unemployment rate. Last quarter, U.S. GDP unexpectedly grew by 2.1%, further highlighting the resilience and vitality of the U.S. economy, providing strong support for investors.
Robust Corporate Earnings: Multinational giants like Microsoft (MSFT.US) and Procter & Gamble (PG.US) have achieved solid earnings due to their leading positions in the industry and strong market competitiveness. This not only brings considerable returns to investors but also enhances market confidence in the overall profitability of U.S. companies.
Moreover, compared to other major economies globally, the relative advantages of the U.S. economy are becoming more apparent. The European economy is currently facing a series of challenges, with insufficient economic growth momentum. In this global economic landscape, the strong performance of the U.S. economy makes investors more inclined to invest in the U.S. stock market in pursuit of higher investment returns.
It is worth noting that there have also been positive signals regarding tariff negotiations. President Trump has hinted that he is willing to ease restrictions on Chinese goods, which helps to alleviate trade tensions. The easing of trade relations is significant for both the global economy and market confidence, creating a relatively favorable external environment for capital inflows into the U.S. stock market.
However, not everyone is optimistic about the sustainability of this growth rate. Technology stocks have once again become the leading sector, and their valuations are starting to rise gradually. For those investors who experienced the last market surge, the current valuation levels may seem too familiar, raising concerns about a potential market bubble. Jaya Chandran also cautions investors that while the market currently shows strong momentum, it is essential to be vigilant about potential cracks and avoid possible investment risks
