Visualized: Q1 Global Stock Market Return

After two strong years of double-digit gains, U.S. equities saw a sharp reversal in Q1 2025. Concerns over inflation and slowing GDP growth triggered a selloff, prompting investors to look abroad—particularly toward Chinese and European markets. To capture the eventful quarter, our friends at Visual Capitalist have compiled the following infographic, based on data from several sources.

This quarter’s global stock performance reveals a clear shift in momentum. The Hang Seng Index led the way with a 15.3% surge, driven by renewed investor optimism and stronger-than-expected corporate earnings. A standout was Tencent, whose profits jumped 90% year-over-year in Q4 2024.

In Europe, Germany’s DAX 40 rose 11.3%, fueled by proposed stimulus measures—including a $535 billion infrastructure and military investment plan announced by the chancellor-in-waiting. This provided a major boost to defense and construction stocks. Italy also saw double-digit gains, while Switzerland’s SMI and France’s CAC 40 posted solid returns of 8.6% and 5.6%, respectively.

Meanwhile, Japan’s Nikkei 225 fell into correction territory, dropping 10.7%—its worst quarterly performance since early 2020—amid heightened global trade tensions.