US stocks have dramatically reversed their position relative to global markets since the Mideast war erupted, now leading international investors after trailing their peers badly last month. Traders attribute this shift to US energy independence and the dollar's resurgence as a haven asset during the conflict. The S&P 500 Index has held its ground this week, falling less than 1% as tech and energy gains offset losses, while the MSCI All Country World Index excluding the US has tumbled 6%, marking its biggest weekly outperformance since April. This reversal underscores how quickly sentiment can pivot as global circumstances evolve.

Asian markets, particularly South Korea, have borne the brunt of the conflict, with an MSCI index sinking over 6% and a record plunge before rebounding. European equities are also down about 5% this week.