FTSE 100 Outperforms Nasdaq in 2025 Rally Amid Corporate Growth
London's FTSE 100 has surged 21.1% year-to-date, eclipsing the Nasdaq Composite's 20.7% gain and marking the UK index as a standout performer. The rally culminated in a record high of 9,930.09 points on November 12, fueled by robust corporate profits, shareholder payouts, and heightened M&A activity.
AJ Bell's Russ Mould notes the FTSE's unique positioning: cyclical stocks, commodity firms, and financial giants provide exposure to global growth and inflation, while utilities and consumer staples anchor steady income. Analysts now project 14% profit growth for 2026—a reversal from recent years' downward revisions—with dividend hikes and buybacks potentially amplifying returns.