UK Stocks Surpass Wall Street in 2023, with Investors Anticipating Further Gains in 2026

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Dec 21 2025

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Source: CNBC

U.K. Stock Performance: The FTSE 100 index has outperformed major U.S. indexes in 2025, gaining over 21.1% compared to the Nasdaq's 20.7% and the S&P 500's 16.2%, driven by rising corporate profits and falling interest rates.
Future Outlook for FTSE 100: Analysts predict continued growth for the FTSE 100 in 2026, with expectations of 14% profit growth and ongoing share buybacks, although concerns about growth and political stability remain.
Investor Sentiment: Despite strong performance, U.K. equities are viewed as relatively undervalued and attractively priced, suggesting they should be part of a diversified investment portfolio.
Mixed Views on U.K. Market: While some analysts see potential in U.K. stocks, others express caution due to a lack of clear growth catalysts compared to other markets, predicting modest gains of 5% to 10% for the FTSE 100 next year.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.