FTSE 100 outperforms over half the S&P 500 in past two years –  doubling returns of Apple

London, Wednesday 22nd July -  The FTSE 100 has outperformed over half of the companies in the S&P 500 over the past two years - beating the likes of Apple, Tesla, McDonald's and Starbucks, analysis from investing and trading platform IG shows.

Since July 3 2023 - the date that Apple’s valuation overtook the entire FTSE 100 - the UK index has returned 28%. In the same period, Apple has delivered just 11%, while Tesla has returned 18% (See Table 1).

The UK stock market’s recent surge comes as investor sentiment toward the US wavers in the wake of President Trump’s unpredictable tariff agenda. Valuations of US companies have been hit by a combination of trade tensions, uncertainty around US policy and the weakening of the dollar.

The FTSE 100’s strong performance is being fuelled primarily by financials, defence stocks and ‘old economy’ sectors such as energy and industrials (See Table 2). Beneficiaries of the defence surge include BAE Systems (up 121% in two years), Babcock (280%), and Rolls-Royce, which has returned investors a staggering 560% in the past two years.

UK listed banks have also rewarded investors and helped to drive the FTSE 100’s performance - with Barclays (+144%), Lloyds (96%) and Standard Chartered (106%) benefitting from higher interest rates since the Covid-19 pandemic and a more stable regulatory system for lending. 

Across the pond, while certain tech favourites such as Nvidia and Microsoft continue to perform, the so-called Magnificent 7 is being let down by Tesla and Apple, while many other well-known S&P 500 companies have struggled over the past two years. This includes global brands such as McDonald’s (6% return) and Starbucks (-1%), weighed down by rising costs, supply chain disruptions, and changing consumer habits.

Chris Beauchamp, Chief Market Analyst at IG Group, said: 

“The UK stock market faces serious challenges - with more companies currently leaving than joining. But that hasn’t stopped the blue chip index from delivering the goods over the last couple of years. 

“With tariff risks still present and US valuations looking stretched, it makes sense that investors should look for alternative developed markets in which to park their money. UK equities remain undervalued and under-owned despite their strong performance. 

“The UK market offers exposure to global earnings, solid balance sheets, and valuations that remain relatively low by international standards - suggesting there is still value to be unlocked. Its exemption from the more aggressive elements of Trump’s proposed tariff regime has added to the case for the FTSE, particularly at a time when US exceptionalism appears to be fading and market leadership is beginning to broaden.”

According to a recent IG survey of 1,800 UK-based clients, investor confidence in the US market as a leading source of growth has fallen to its lowest point in over two years. Just 15% of respondents cited that they expected the S&P to be the market most likely to experience the highest growth in the coming six months, down from 29% in December 2024.

Table 1: Shows share price performance of FTSE 100 vs well known US companies

*Period starts July 3 2023 - when Apple’s market capitalisation overtook FTSE 100

Data taken 21.07.2025 from Reuters. Rounded up to nearest %

Table 2: Shows the top 10 FTSE 100 performers since 3rd July 2023

*Period starts July 3 2023 - when Apple’s market capitalisation overtook FTSE 100

Data taken 21.07.2025 from Reuters. Rounded up to nearest %