Foreign investors flocked back to U.S. stocks and bonds in May after Trump’s tariff scare, resulting in record net inflows. U.S. stocks hit record highs while bond yields remain high. Data from the Treasury Department shows a $311.1 billion inflow, a stark contrast from April’s $14.2 billion outflow.

Market experts are surprised by the resilience of U.S. markets, with foreign inflows nearing all-time highs. The rebound in May marks a turnaround from Wall Street’s fear of the end of U.S. supremacy. Talks with Japan and other trade partners have cemented higher tariff rates, with ongoing negotiations potentially raising rates even more.

Market veteran Ed Yardeni is heartened by record inflows into U.S. markets, dismissing fears of a massive selloff in bonds and equities. Wall Street’s top names have shifted from alarm over Trump’s tariffs, with Citadel’s Ken Griffin warning of eroding the U.S. “brand” and El-Erian saying U.S. exceptionalism has been put on pause.

Deutsche Bank believes American exceptionalism is collateral damage from Trump’s tariff war, expecting the erosion of U.S. ability to finance itself cheaply. Despite the rebound in U.S. markets, stock indexes in Europe and China outperform U.S. rivals. The dollar has suffered its worst first half in over 50 years.

Read more at Yahoo Finance: ‘US exceptionalism roars back’ as markets defy doomsayers and draw record foreign inflows after panic over Trump tariffs