Chart of the Day - Wednesday, July 23, 2025

🏆 Today's Chart of the Day was shared by Ian McMillan (@the_chart_life). 
 

• It was a solid day for U.S. stocks, with the S&P 500 notching a fresh record high, and Small Caps outperforming. However, international stocks stole the show, with the iShares MSCI EAFE ($EFA) jumping +2.5% to a record high.
   
• EAFE stands for Europe, Australasia, and the Far East. The index tracks developed markets outside North America, including the UK, Japan, Germany, France, and Australia. 
   
• Japanese heavyweights like Toyota, Mitsubishi, and Sony fueled today's move in $EFA, as the Nikkei 225 re-emerged from the mother of all bases. Ian notes that global participation supports the broader bull case for equities. If $EFA holds above its 2007 highs, developed markets outside the U.S. are primed for a multi-year rally. 
   

The Takeaway: International markets are confirming the strength in U.S. equities. With $EFA shattering a 17-year ceiling, the stage is set for a multi-year rally in foreign developed markets.