For years, the S&P 500 soared above the stock indexes of other countries. But since Trump’s inauguration, it has fallen 6 percent and is now trailing major markets in Europe and China.
President Trump has promised to create an age of American exceptionalism with policies that put the United States first, and ahead of other nations.
But Mr. Trump’s moves in the early days of his administration have had the opposite outcome for the American stock market.
The S&P 500, which for years had been soaring above the stock indexes of other countries, is now trailing major markets in Europe and China, as investors have started to pull money from the United States and reallocate it around the world.
Since Mr. Trump’s inauguration, the S&P 500 has fallen 6 percent, while the Dax index in Germany has risen 10 percent and the Europe-wide Stoxx 600 index has gained more than 4 percent. Other U.S. indexes have fared even worse, as European markets have been buoyed by plans for military spending on the continent after Mr. Trump made it clear he wants those nations to do more to protect themselves.
The Hang Seng Index in Hong Kong has soared further, rising more than 20 percent since Mr. Trump took office in January, driven by the Chinese government’s efforts to stimulate its economy. Mexico’s IPC index, which is domestically focused and proving resilient to Mr. Trump’s steep tariffs, is 5 percent higher.
With American markets being whipsawed by the uncertainties over Mr. Trump’s tariff policies and deep cuts to the federal government, investment advisers have started steering clients to other stock markets around the world.