US Stocks Lagging: Will the S&P 500 Rebound?

As of April 22, 2026, the S&P 500 has yielded a modest 3% return year-to-date, significantly trailing behind many European and Asian stock markets. This trend continues a pattern observed since 2025, a period characterized by a 'Sell America' sentiment among global investors. Markets such as the U.K.'s FTSE 100 have posted a 5.5% return, while Japan's Nikkei 225 and South Korea's Kospi have achieved double-digit gains, with both indices surpassing previous all-time highs. Latin American stocks have also experienced robust growth, bolstered by their commodity wealth and distance from Middle Eastern conflicts. In contrast, some European markets have seen their momentum wane, with Germany's Dax experiencing a slight decline and France's Cac 40 remaining largely flat.

Despite the S&P 500 touching an all-time high of 7,143 on April 17, 2026, specific sectors like healthcare and financials have hampered its overall performance. Barclays strategists, however, believe U.S. equities are poised for a comeback in the coming months. They highlight the U.S.'s stronger capacity to absorb energy shocks and a consistently resilient consumer base, evidenced by over $100 billion in fund flows into U.S. equity funds in 2026 alone. Furthermore, Barclays anticipates favorable earnings momentum for the U.S., with projected net margins exceeding global peers. The analysts also note that U.S. equity valuations have become relatively more attractive, with Big Tech showing a more appealing historical valuation, suggesting a better entry point for investors.