Daily Management Review

Foreign investors bought US stocks at a record pace in Q2


09/29/2025


Bloomberg reports, referencing Federal Reserve data, that foreign investors made unprecedented US stock acquisitions in the second quarter of 2025, even amid escalating tariff conflicts.



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Investment from abroad in the US stock market reached $290.7 billion between April and June. Stocks represented almost 32% of international investment in US assets, marking the highest level since at least 1968.

The high demand for US stocks was partially influenced by interest in leading IT firms involved in artificial intelligence, including Nvidia, Microsoft, and Alphabet. A declining dollar also had a positive impact, making US assets more affordable for those with other currencies.

"Numerous international buyers avoided US products because of tariffs, yet US stocks remained highly sought after," remarked Rob Anderson of Ned Davis Research.

In 2025, the performance of the US stock market is falling short compared to other nations. The S&P 500 has increased by 13% so far this year, while the MSCI World Index, not including US equities, has gained 15%, and the MSCI All-Country World Index, which also omits US stocks, has climbed 22%.

source: bloomberg.com