Since the start of 2023, stock market indices have been rising rapidly in the United States, while they have stagnated in the euro zone. We look at possible explanations for this difference in stock market index performance:
ļ® The weight of major new technology companies in the United States;
ļ® Changes in corporate earnings;
ļ® The outlook for the economy and interest rates;
ļ® The exaggerated optimism of US investors, particularly with regard to the effects of artificial intelligence.
We believe that the weight of new technology companies, the outlook for interest rates and the optimism of US investors play a central role in explaining the valuation gap between US and European stock market indices.
- Natixis
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