U.S. Exceptionalism Thrives: Nasdaq Crushes Global Rivals in Stunning 2025 Rally
The Nasdaq's relentless surge leaves global markets eating dust—again.
Wall Street's tech-heavy juggernaut just schooled international peers on how to print gains. While other indices flounder, the Nasdaq keeps rewriting the rulebook with Silicon Valley's gravitational pull.
Why America (Still) Wins
Regulatory flexibility meets venture capital firepower—while EU bureaucrats debate spreadsheets, U.S. markets move at blockchain speed. The result? A 2025 performance gap wide enough to park a SpaceX rocket.
The Cynic's Corner
Of course, this 'exceptionalism' runs on Fed liquidity and stock buybacks—but try telling that to the algo traders minting fortunes. Some things never change.
Economy validates U.S. exceptionalism
Other economic variables, such as the real per capita GDP growth, also support the exceptionalism narrative. The metric measures the rate at which the value of goods and services produced per person in an economy is adjusted for inflation.
"The U.S. massively outperforms the EU in terms of real per capita GDP growth. The reasons for that are deeply structural and haven't changed one bit. U.S. exceptionalism - for growth at least - is here to stay...," Robin Brooks, senior fellow in the Global Economy and Development program at the Brookings Institution, said on X.
The U.S. jobs data released Thursday further added another stake in the ‘loss of American exceptionalism narrative, as Bruce J Clark, head of rates at Informa Global Markets, said on LinkedIn.
Implications for BTC and DXY
The return of U.S. exceptionalism to U.S. stocks can be viewed as a positive development for Bitcoin (BTC) and the broader crypto market, given the historical positive correlation between the two.
BTC, the leading cryptocurrency by market value, has already risen 44% to $108,000, rallying swiftly from the early April lows of nearly $75,000, according to CoinDesk data. Moreover, with the pro-crypto president in the White House, one may argue that bitcoin is part of the U.S. exceptionalism play.
Meanwhile, the return of U.S. exceptionalism could also put a floor under the U.S. dollar. "With today’s jobs data putting another stake in the ‘loss of American exceptionalism’ narrative, the temptation to get long dollars here for a counter-trend trade is big and growing," Clark noted, adding the ECB officials' growing discomfort with the strong euro.
Early this week, the FT reported, quoting a senior ECB official, that the central bank may need to signal that too much strengthening in the euro could be an issue, as it might lead inflation to hover below targets. Meanwhile, in an interview with Bloomberg, ECB Vice President Luis de Guindos said that "overshooting" of the euro should be avoided, flagging levels above 1.20 as complicated.
