The FTSE 100 is on track for its best year since 2009, as investors rotate into UK equities amid concerns about a potential bubble in artificial intelligence stocks.
The blue-chip index is up around 20% so far in 2025, putting it on course for its strongest annual performance in 16 years. The only better showing in that period was in 2009, when the index rose 22% as markets rebounded from the global financial crisis.
UK stocks have outperformed Wall Street’s S&P 500 this year, helped by disruption to global trade following Donald Trump’s tariff policies. The FTSE 100 has also benefited from its relatively low exposure to technology shares, making it an attractive alternative as worries grow about stretched valuations in the AI sector.
The index jumped a further 1.6% today after official data showed inflation falling sharply, reinforcing expectations that interest rate cuts are on the horizon.
