Goldman Sachs (GS) dropped news that hit like the opening bell on a packed trading floor. Investors have funneled $154 billion into U.S. equities so far this year. That marks the biggest start since 2001. “This pace of inflows is unprecedented,” said Goldman’s Kartik Jayachandran. The cash surge has pushed U.S. stocks ahead of global markets and reignited Wall Street’s focus on American equities.
U.S. Equities Steal the Show in Global Markets
Let’s put this in perspective. Global equity funds have pulled in $256 billion this year, with U.S. markets grabbing more than half the spoils. That makes 2025 the second-largest year for global inflows since Goldman started tracking in 2001. Only 2021 beat it, with a staggering $413 billion.
But this year’s story belongs to the U.S. The $154 billion rolling into American stocks even beats the previous U.S. record of $154 billion set back in 2021. It’s not just money moving around—it’s a bet. A wager on the U.S. economy holding firm amid geopolitical tension, rate uncertainty, and global slowdowns.
Investors Back the U.S. Growth Engine
Why now? The U.S. economy has shown grit. Inflation is cooling, sitting around 3.2% after peaking near 9% in 2022. The labor market remains tight. Unemployment is holding at 3.8%, with job openings still strong.
GDP growth continues to surprise. The economy expanded at an annualized rate of 2.1% last quarter. That beat recession warnings. Consumer spending has stayed solid. Business investment hasn’t cracked, even with higher interest rates.
Earnings season has added momentum. Tech giants and consumer staples alike have topped expectations. Microsoft (MSFT), Procter & Gamble (PG), and others have posted stronger results.
Global comparisons make the U.S. even more appealing. European markets have stumbled. Growth is slow. Germany barely dodged recession last quarter. China’s rebound hasn’t materialized. Consumer demand is soft. Real estate struggles weigh heavy.
Trade tensions are easing. Washington and Beijing have reopened talks. President Trump recently signaled willingness to roll back tariffs on Chinese goods. Major retailers like Walmart (WMT) and Target (TGT) have pushed hard for relief. Easing tariffs could lower costs and smooth supply chains.
Yet, some worry this flood of cash could overheat certain sectors. Tech stocks have led the charge. Valuations are climbing to levels that feel familiar—perhaps too familiar for anyone who remembers 2021. “The momentum is there,” Jayachandran added. “But we can’t ignore potential dislocations.”
S&P 500 Chart Reflects Investor Confidence
The S&P 500’s performance backs up the story. According to TipRanks data, the SPX index is up nearly 87% over the past five years. Even with short-term pullbacks—like an 8.3% drop year-to-date—the long-term trend remains firmly upward. The S&P 500 sits around 5,410 as of this week, after hitting a high of over 6,100 earlier this year. This climb mirrors the massive inflows Goldman highlighted.
While recent months have shown some volatility—with a 10.5% slide over the last three months—investors continue to pour capital into the index. The resilience in the longer-term picture reinforces why so much money is still chasing U.S. equities. It’s this steady upward grind that keeps the U.S. market in favor, despite short-term bumps along the way.
