📈 U.S. Stock Market Surge vs. Europe Stagnation

U.S. Gains in Advanced Economy Equity Markets as Europe Falls Behind Since the Global Financial Crisis

Following the 2008 Global Financial Crisis, the U.S. stock market entered a sustained period of expansion—driven by strong corporate earnings, rapid technological innovation, and resilient investor confidence. In contrast, Europe’s equity markets have faced persistent challenges, including sluggish economic growth, structural inefficiencies, and recurring eurozone disruptions.

From 2007 to April 2025, the U.S. share of advanced economies’ stock market capitalization rose sharply from 42% to 62%, highlighting its dominant role in global equity performance. Over the same period, Europe’s share declined from 34% to 20%, reflecting its relative stagnation.

During these 18 years, U.S. stock market capitalization more than tripled—rising over 200% with a compound annual growth rate (CAGR) of 6.5%. In contrast, Europe’s market capitalization grew by just 23% (1.2% CAGR). Adjusted for inflation, Europe’s stock market has delivered virtually no real growth, underscoring its prolonged underperformance relative to the United States.