The FTSE 100 is charging towards the symbolic 10,000-point threshold, a landmark moment for London's financial centre after a sustained period of outperforming its major American rivals throughout 2025.
A Year of UK Market Dominance
On Wednesday, 12 November 2025, the blue-chip index continued its ascent, rallying at the open and edging closer to the magic number. This follows two consecutive record closes, with investor confidence remaining robust despite simmering concerns over private credit and an overinflated artificial intelligence bubble.
This bullish sentiment for UK equities stands in stark contrast to markets overseas. While the FTSE marches higher, the tech-heavy Nasdaq in the United States has fallen nearly two per cent in the last month as AI-related anxieties spook investors.
Dan Coatsworth, head of markets at AJ Bell, remarked, "It's been a historic year for the UK as the FTSE 100 has outperformed all the major US stock indices. Hitting 10,000 would be the cherry on top, proving to cynics that the UK market is not stuck in the mud."
Traditional Stocks Fuel the Rally
The UK market's composition has been a key factor in its success. While US indices have been rocked by volatility in tech stocks, the FTSE 100's heavy weighting towards more 'traditional' sectors has provided stability and attractive returns.
This dynamic was evident on Tuesday, when the Dow Jones Industrial Average closed at a record high, lifted by healthcare giants like Merck and Johnson & Johnson. Simultaneously, the Nasdaq dipped, with chipmaker Nvidia losing around three per cent after SoftBank sold its entire $5bn stake in the firm.
"Lots of people have criticised the UK for being an old economy market, full of boring companies in the banking and natural resources sector," Coatsworth noted. "Yes, it lacks the excitement of go-go-growth stocks omnipresent in the US, but boring can also be beautiful when it comes to investing."
The performance of individual stocks underscores this trend. Miner Fresnillo has surged nearly 260 per cent year-to-date, leading the index. Other top performers include engineering stalwart Rolls-Royce (up over 90 per cent), Lloyds Banking Group (over 70 per cent), and defence specialist Babcock (over 130 per cent).
Geopolitical Shifts and Budget Concerns
The energy in UK equities has also been fuelled by international volatility. Several leading City figures have pointed to Donald Trump's 'Liberation Day' and subsequent tariffs as triggering a rotation of funds out of US assets and across the Atlantic.
Asset manager Royal London, for instance, sold off some of its US holdings over the summer due to valuation worries and increased its exposure to the UK market.
Looking ahead, all eyes are on the UK government's upcoming Budget. Coatsworth highlighted that the UK is a "rich hunting ground" for dividends, but this appeal could be dampened if the Chancellor decides to increase the tax rate on shareholder returns.
"Investor sentiment is still guided by what's happening on these shores," he said. "The Budget will be the key test for the market. Anything deemed negative for the economy could weigh on shares in the retail, banking, construction, housebuilding and property sectors."
With the FTSE 100 having first hit 9,000 just 120 days ago on 15 July, a breach of 10,000 in the coming days would represent the quickest 1,000-point jump in the index's history, cementing a remarkable period for the London market.
