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The FTSE 100 is working neck and neck with the S&P 500 so far as the returns share is worried. Which will shock buyers who’ve grown used to Wall Avenue leaving London trailing in its mud.
The US has loved an unlimited benefit because of its assortment of large know-how corporations. But investing is cyclical. Now there are indicators that old-school UK banks, insurers, miners and pharmaceutical corporations are getting some love.
Inventory market racing demons
The FTSE 100 has one benefit over the S&P 500 – it pays extra earnings. The standard dividend yield is round 3.3%, in contrast with 1.1% for the S&P 500.
The UK blue-chip index has been delivering development too. It climbed 17.7% during the last 12 months to 10,824. With dividends included, the entire return is round 21%.
The S&P 500 grew 20.2%. Together with dividends the entire return is 21.2%. This race might hardly be nearer. I’m impatient to know the way it seems and determined to ask ChatGPT.
It’s not a crystal ball, however a chatbot. Which suggests it doesn’t actually know, nevertheless it’s enjoyable to ask. Its view? “Sure. I believe the FTSE 100 might beat the S&P 500 over the following yr, though I wouldn’t name it the extra doubtless final result with any confidence.”
Good piece of fence sitting, that. It then highlighted the AI bubble risk. “If buyers all of the sudden resolve they’ve paid an excessive amount of for the know-how giants, the S&P 500 might take a nasty hit. The FTSE 100 would possibly present some ballast.“
A story of two massive cities
Don’t rejoice too quickly, FTSE 100 followers. The bot mentioned a US correction or crash would injury investor confidence in all places. “Buyers fleeing danger are inclined to promote every part first and ask questions later.”
Increased rates of interest are one other risk because the Iran warfare drives up vitality costs. That may hit US development shares “notably exhausting by lowering the worth buyers place on their future income,” ChatGPT mentioned.
It then cautioned: “Increased charges might additionally harm FTSE 100 dividend shares. Revenue seekers might get higher returns from money and bonds with out risking their capital.”
However general ChatGPT is upbeat concerning the FTSE 100 concluding: “It’s been the retro market for a very long time. Typically that’s exactly when issues get attention-grabbing.”
Glencore shares are booming
In my opinion, issues are already attention-grabbing. I maintain FTSE 100-listed Glencore (LSE: GLEN) and it’s been a rare performer.
The shares have risen 102% during the last yr. But it wasn’t at all times this manner. Final yr, Glencore’s earnings have been hit by weaker vitality and coal costs, with 2025 adjusted EBITDA falling 6% to $13.5bn.
Copper costs have surged on the inexperienced transition and Glencore is a serious producer. Within the first half of 2026, adjusted EBITDA rocketed 86% to $10.1bn. It’s additionally returning loads of money. Glencore has introduced round $3.5bn of shareholder returns for 2026, together with dividends and a $500m share buyback.
Commodity costs are additionally cyclical and might fall as rapidly as they rise. A world recession would harm demand, whereas mining stays a unstable enterprise. Even so, Glencore’s copper ambitions and enhancing income make the shares price contemplating immediately. US tech nonetheless dominates the headlines, however loads of FTSE 100 shares excite me too.
Must you make investments £5,000 in Glencore Plc proper now?
When investing professional Mark Rogers and his staff have a inventory tip, it could possibly pay to hear. In any case, the flagship Twelfth Magpie Share Advisor e-newsletter he has run for almost a decade has offered hundreds of paying members with high inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that buyers ought to think about shopping for. Need to see if Glencore Plc made the record?
Harvey Jones owns shares in Glencore.
