Foreign investors are pulling out of the U.S. stock market due to high valuations and instability.

Foreign investors are reducing their exposure to the U.S. stock market due to high valuations, political instability, and concerns over American foreign policy. Markets in Europe and Asia have outperformed the U.S. this year, with the S&P 500 down 3.6%, while the Stoxx 600 in Europe is up 8.3%. The U.S. economy faces additional challenges from rising input costs, economic uncertainty, and potential tariff impacts, increasing the stock market's vulnerability.