U.S. markets continue to grapple with AI-driven volatility as capital quietly rotates from the United States. While America still dominates artificial intelligence, heavy portfolio concentration in AI has made many investors overly U.S.-centric. With leading AI names such as Nvidia trading in a range, institutional money is increasingly diversifying into international markets to balance risk.
Year to date, several foreign ETFs have outperformed the Nasdaq 100. South Korea has led gains, benefiting from strong demand for memory chips amid AI-driven supply constraints and improving global industrial activity. Brazil has advanced on rising commodity demand tied to infrastructure and data center expansion. Mexico is gaining from shifting supply chains and tariffs on China. Thailand is rising on hopes of political stability following elections. Japan is moving higher on structural corporate reforms and stronger political leadership. Even Europe is outperforming due to heavier exposure to industrial, materials, and financial sectors.
This divergence highlights that popular U.S. tech stocks are lagging broader global opportunities. Meanwhile, gold’s resilience after a strong jobs report suggests some investors are hedging against elevated U.S. equity valuations.
Initial jobless claims were roughly in line with expectations, while CPI data tomorrow could shape rate expectations and near-term direction. Key tickers to watch include $QQQ, $NVDA, $EWY, $EWZ, and $EWJ.
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