Despite global challenges such as recurring inflation and geopolitical volatility, international capital rushed into the US stock market at an unprecedented pace in H1 2026. According to the latest US Treasury data, global investors net purchased over $1.2 trillion in US stocks by end of June, a record for the period, surpassing even the peak of the 2021 tech bull market and far exceeding expectations. What drives this unwavering focus on the US market? This article examines from four dimensions: liquidity, industry leaders, policy environment, and allocation value, providing an in-depth analysis of why US stocks remain an unshakable global stronghold in 2026.
Liquidity Advantage: Unmatched Depth and Breadth
The world's largest exchanges, NYSE and NASDAQ, have a combined daily turnover exceeding $500 billion, a liquidity level greater than all other markets combined. For institutional investors, liquidity means lower impact costs and higher execution efficiency. In Q2 2026, the average daily turnover rate of US stocks remained around 5%, while markets in Southeast Asia and Europe generally saw less than 2%. High liquidity makes US stocks the natural choice for large funds to allocate core assets.
Moreover, the role of US stocks as the "global pricing center" has further strengthened. Whether it is Saudi Aramco, TSMC, or CATL, shares of these non-US companies trade in American Depositary Receipt (ADR) form in the US, attracting global capital. In H1 2026, trading volume of Chinese concept stocks in the US increased 30% year-on-year, and Southeast Asian companies continued their hot streak of listings in the US. This "siphon effect" makes US stocks not only a stage for US companies but also an arena for high-quality global assets.
Mature ETF Ecosystem: One-Click Allocation to Global Leaders
The US ETF market has exceeded $10 trillion in assets, covering indices, sectors, themes, leveraged, inverse, and various other products. The S&P 500 ETF alone has over $1.5 trillion in assets under management, with a daily trading volume of about $50 billion, roughly equal to the entire daily turnover of the Singapore Exchange. For Southeast Asian investors, buying US stock ETFs provides easy exposure to tech giants like Apple, Microsoft, and Nvidia without the need to research individual stocks, lowering the investment barrier.
In July 2026, the SEC approved the first batch of "AI-Themed ETFs" and "Space Economy ETFs," further enriching investment choices. These innovative products attracted a large number of young investors, with fund net subscriptions continuing to rise. In short, the US ETF ecosystem offers unparalleled convenience and diversity to global investors.
Tech Giants Continue to Lead: Profitability and Moat Deepening
Q2 2026 earnings season showed that the "Magnificent Seven" (Apple, Microsoft, Nvidia, Google, Amazon, Meta, Tesla) posted combined revenue growth of 18% year-on-year and net profit growth of 22%, far exceeding other sectors. Nvidia benefited from AI computing demand, with quarterly revenue exceeding $40 billion, up 45% year-on-year; Apple's services revenue hit a record high of $28 billion. These companies continue to generate excess profits through strong brands, technological barriers, and user stickiness.
For global investors, investing in US stocks essentially means investing in the world's most innovative companies. From cloud computing to artificial intelligence, from autonomous driving to biotechnology, US tech giants dominate almost every frontier field. In July 2026, Microsoft announced the launch of a "Cloud AI Workstation," integrating its Azure and OpenAI technologies, further cementing its leadership in AI infrastructure. This continuous innovation makes the US tech sector a "must-have" for global capital.
Fed Policy Shift: Rate Cut Expectations Boost Valuation Appeal
The Federal Reserve kept rates unchanged at its June 2026 meeting but signaled a possible rate cut within the year. Market consensus expects a first 25-basis-point cut in September. By end of July, the 10-year Treasury yield had fallen from 4.2% at the start of the year to 3.6%, driving up US stock valuations. Low interest rates reduce capital costs and encourage investors to shift from bonds to stocks.
Historical data shows that during Fed rate cut cycles, the S&P 500 has averaged a 12% gain. On July 28, 2026, the S&P 500 broke 6,000 points, setting an all-time high. At the same time, the US dollar index edged lower, benefiting international capital inflows. Southeast Asian investors can also benefit from currency arbitrage; for example, with the Singapore dollar stable against the US dollar, the actual return on US stock ETFs is higher than local markets.
After-Hours Trading and Real-Time Data: Meeting Global Traders' Needs
US stocks offer full pre-market (4:00-9:30 ET) and after-hours (16:00-20:00 ET) trading sessions, covering Asian and European trading hours. Singapore investors can easily trade US stocks from evening to early morning local time. In 2026, many brokers launched zero-commission US stock trading and integrated real-time market data, making cross-border investment nearly barrier-free.
After-hours trading is especially important: most earnings and major news are released after the close, allowing investors to react immediately. For example, on July 28, 2026, after Tesla reported better-than-expected earnings, its stock rose 8% in after-hours trading, providing clear direction for the next day's open. This mechanism keeps the US stock market at the forefront of price discovery.
Global Allocation Value: Balancing Risk Diversification and Growth Capture
Amid rising global uncertainty, the asset allocation value of US stocks becomes more prominent. In H1 2026, European stocks fell 5% due to the Russia-Ukraine conflict and Middle East tensions, while emerging market volatility increased. However, US stocks only corrected 2% before quickly rebounding, demonstrating strong resilience. The correlation between the S&P 500 and other major global indices has long been below 0.6, meaning adding US stocks to a portfolio can effectively reduce overall volatility.
For Southeast Asian investors, allocating some funds to US stocks can also hedge against domestic economic cycles. For instance, when Singapore's economy slows due to a decline in electronics exports, US consumer and tech stocks tend to perform strongly. In 2026, ASEAN investors have increased their allocation to US stocks from 5% to 15% through channels such as Stock Connect and QDII funds, and this trend is expected to continue.
Conclusion: US Stocks Remain the Cornerstone of Asset Allocation
Data in 2026 once again proves that despite geopolitical risks and valuation debates, the US stock market, with its unparalleled liquidity, strong fundamentals of tech leaders, Fed policy support, and convenience of global allocation, remains the first choice for international investors. For Southeast Asian investors, whether through ETFs, ADRs, or direct stock investments, they can easily enjoy the growth dividends of US stocks. In the era of global investing, neglecting US stocks may mean missing the biggest opportunity.
(This article is for knowledge sharing only and does not constitute investment advice. Investing involves risks; enter the market with caution.)
