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Foreign Investors Flock to US Stocks Despite Tariffs
19 Feb
Summary
- Foreign stock purchases in the US more than doubled in 2025.
- AI emergence helped offset investor concerns over trade wars.
- US stock gains trailed global markets despite increased foreign buying.
Foreign investors dramatically boosted their acquisition of US stocks in 2025, more than doubling their net purchases from the prior year. This surge occurred even as President Donald Trump's tariffs introduced market uncertainty and clouded corporate outlooks, presenting a challenge to the 'Sell America' sentiment. The continued appeal of American exceptionalism, particularly within the tech sector, is cited as a key driver for this trend.
While policy-related worries generated volatility, the burgeoning field of artificial intelligence offered a counter-narrative, largely perceived as a catalyst for future corporate profits. Despite this influx of foreign capital, the US stock market's performance, represented by the S&P 500's 16% annual return, fell short of international peers. Norway emerged as a leading buyer, followed closely by Singapore and South Korea, while China and Kuwait remained net sellers.
