At long last, the market story of the year — at least the good news — didn't center on U.S. stocks. Instead, foreign markets topped the charts, lifted in part by a weakening dollar.
The MSCI All Country World Index ex USA — representing all markets except the U.S. — returned 32% in 2025, a whopping 14 percentage points ahead of the 18% gain in the S&P 500. European stocks led with a 35% return, but other developed regions and emerging markets were close behind. The MSCI Emerging Markets index gained 34%; Asian stocks climbed 30%.
