U.S. Exceptionalism Thrives: Nasdaq Crushes Global Peers in Stunning 2025 Rally

The Nasdaq's relentless rally leaves global markets eating dust—again.

Tech Titans Flex Muscle

While European and Asian indices wobble under macro pressures, America's tech-heavy benchmark keeps defying gravity. No surprises here—just another quarter of Wall Street writing its own rules.

Liquidity Wins, Fundamentals Lose

Forget P/E ratios. When the Fed's liquidity spigot stays open, money flows where the hype lives. And right now, that's still Big Tech—regardless of what the 'valuation hawks' screech about.

Another day, another dollar for the world's most expensive momentum trade. But hey—if the music's still playing, Wall Street will keep dancing (until someone unplugs the speakers).

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.