European stocks outperforming in 2025 is over, but euro strength may still benefit investors.

European stocks took an early lead in 2025, outperforming Wall Street due to U.S. policy changes and Germany’s fiscal shift, but U.S. markets have caught up. The STOXX 600 index was up 6.6% compared to the S&P 500. Calls for European outperformance remain in currencies, with the euro up 14% against the dollar. Tech sector in the S&P 500 is up 24% since April. European stocks have seen increased interest, particularly in defense and banking sectors. The euro is at a four-year high, making European stocks cheaper for U.S. investors.

Read more at Yahoo Finance: European stocks’ 2025 outperformance is over, but don’t forget the euro