The US and global stocks have risen approximately 7% year-to-date in 2025. The surge comes even after Trump’s erratic trade wars and tariffs which brought the markets down in April. Things went North after he imposed a 90-day pause on tariffs and other countries agreed to lower duties.
In addition, global stocks rallied on the heels of Trump’s inauguration in January and continue to hold the positive momentum. “Markets seem to have forgotten everything that the Trump administration has been threatening to do,” said HSBC’s Asset Management Global Chief Investment Officer Xavier Baraton to Reuters.
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Global stocks turned bullish this month and did not dip even after the US entered the Iran and Israel conflict. The development indicates that investors are raising their portfolios even during times of turmoil. This rarely happened previously as the markets tanked whenever a bullet was fired, let alone a missile.
Trump Diffusing the Conflict Might Have Made Global Stocks Rise
Despite the US bombing of three nuclear bases in Iran and the Islamic Republic’s retaliation against military bases in Qatar, Trump managed to diffuse the conflict by negotiating a ceasefire. He also came down heavily on Israel for violating the ceasefire warning them of financial consequences. Global stocks saw a surge on Monday after the event and remained in the green for three consecutive days.
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Also, Republican leaders are progressing towards pushing the One Big Beautiful Bill Act through Congress before July 4. The bill will add trillions to the $36.2 trillion national debt. Estimates suggest that an additional $5 trillion could be added to the national debt making global stocks a risky affair.
“Republicans know their plan is a debt buster but they don’t seem to care. They’re actually putting this country in debt with the tax cuts. They know that,” said Senate Democratic leader Chuck Schumer. Overall, global stocks may face volatility when the bill is passed in July.