US stocks retested their historical highs toward the end of the Australian financial year period (1 July 2024 — 30 June 2025).
Overall, the S&P 500 Index (SP: INX) rose by 13.63% and delivered total returns (including dividends) of 15.16%.
The US benchmark index entered a market correction in March but recovered quickly.
Just three months later, the S&P 500 was resetting its historical highs during the final week of June.
The previous record had been 6,144.15 points on 19 February.
The S&P 500 reached a new intraday trading peak of 6,215.08 points on 30 June. (It's since gone higher.)
The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) also set a new intraday trading record at 20,418.31 points on 30 June.
James Gerrish of Shaw and Partners comments:
We expect the tech-based NASDAQ to extend recent gains over the coming months, albeit in a choppy fashion.
The Nasdaq rose by 14.87% over the 12 months to 30 June, slightly outperforming the S&P 500.
The Dow Jones Industrial Average (DJX: .DJI) underperformed the S&P 500 and NASDAQ, lifting 12.72% with total returns of 14.72%.
The Dow Jones is different to the other indices as it is not constructed in order of market capitalisation.
Instead, the index is comprised of only 30 committee-selected US stocks.
So, how does the performance of US stocks over the 12 months to 30 June compare to that of the major ASX shares indices?
Image source: Getty Images
US stocks vs. ASX shares in FY25
US stocks operate on a different fiscal year cycle from us.
However, it's interesting to compare their performance to ASX shares over our FY25 period, given so many Aussies now invest in both.
Over the 12 months to 30 June:
S&P/ASX 200 Index (ASX: XJO) shares rose by 9.97% and provided total gross returns of 13.81%.
The benchmark index hit a record high of 8,639.1 points in June, superseding the previous record set in February at 8,615.2 points.
The S&P/ASX All Ordinaries Index (ASX: XAO) lifted 9.47% and delivered total returns of 13.23%.
The S&P/ASX All Technology Index (ASX: XTX) rose by 28.88% and produced total returns of 30.07%.
How do these FY25 results compare to FY24?
The S&P 500 and Dow Jones delivered superior returns for Australian investors compared to ASX 200 or All Ords shares in FY25.
But ASX tech shares did better than their US tech stock counterparts. In fact, they outshone US tech shares by almost 2:1.
As stated above, the ASX All Tech Index experienced 29% growth compared to the NASDAQ's 15% — almost a 2:1 outperformance.
It's also interesting to note that ASX shares had a better year in FY25 compared to FY24, but the reverse is true with US stocks.
In FY24, the S&P 500 rose by 23.31% and delivered total gross returns of 25.02% — about 10% higher than its FY25-period performance.
The NASDAQ lifted 28.64% in FY24, so this year's 14.87% lift represents a halving in the growth rate of US tech stocks.
The Dow Jones Industrial Average Index rose by 12.88% and gave a total return of 14.99% in FY24 — on par with its performance this year.
Whereas here in the land down under…
In FY24, ASX 200 shares rose by 7.49% and gave a total return of 11.44% — about 2.5% lower on both scores than their FY25 performance.
The ASX All Ords rose by 7.55% and also delivered total returns of 11.44% in FY24 — thus, about 2% inferior to its FY25 results.
The All Tech Index rose by 29.85% and produced total returns of 31.84% in FY24 — slightly superior to the NASDAQ's performance.
The All Tech Index's performance in FY24 is on par with FY25, indicating two exceptional years of growth for ASX tech shares.
Why did ASX tech shares outperform US tech stocks in FY25?
Samy Sriram, Markets Analyst at online trading platform Stake, told The Fool:
Australian tech has proven it can run with the best – and sometimes even outrun them, with the past financial year a standout for Aussie tech stocks.
Local names surged to record highs and inked billion-dollar deals, while their US counterparts stumbled under pressure from trade tensions and soaring AI costs.
Sriram said ASX tech share valuations are "above the broader market and so is the growth outlook".
Strong share price growth over the past two years has led to higher market capitalisations and entry into the major indices.
This has driven greater investment inflows via institutional investment and passive investing from retail investors via ASX ETFs.
Sriram said:
… homegrown tech is now rising fast in local market cap tables. Index inclusion is driving fresh inflows from institutional investors.
WiseTech Global Ltd (ASX: WTC) is now valued close to Woolworths Group Ltd (ASX: WOW), while Xero Ltd (ASX: XRO) is on par with Coles Group Ltd (ASX: COL).
Another example is Pro Medicus Ltd (ASX: PME) shares.
Sriram comments:
Pro Medicus, the top weight in the S&P/ASX All Technology Index, has surged 137% over the past year, with its momentum fuelled by ongoing wins for its medical imaging tech.
Entry into the S&P/ASX 50 has also boosted its institutional profile.
Gerrish and his Market Matters team remain "cautiously bullish" toward US stocks and ASX 200 shares for the rest of 2025.
Further reading on ASX tech shares and US tech stocks
Find out which ASX 200 tech shares delivered the best share price growth in FY25.
Find out how the US Magnificent Seven stocks performed over the 12 months to 30 June.
