The UK stock market’s recent surge to record levels has driven a notable increase in retail trading activity on major investment platforms. Data from IG revealed that average daily trades involving FTSE 100 stocks rose by 41 percent in July compared with the same month last year. During July, the FTSE 100 climbed 3.8 percent, surpassing its previous peak recorded in February.

The London-based blue-chip index has delivered a 19.1 percent gain over the past 12 months, maintaining strong momentum even as the US market faced pressures. The S&P 500, a key benchmark on Wall Street, has experienced volatility amid a sell-off in semiconductor shares, highlighting a divergence between UK and US equity performance.

Chris Beauchamp, chief market analyst at IG, noted that UK equities are attracting investor interest partly because of their lower valuations, steady dividends, and limited exposure to the artificial intelligence sector, which has weighed on many high-growth US technology stocks. “Rather than viewing record highs as a reason to take profits, many investors appear to believe the rally still has further to run,” Beauchamp said.

Historically, the FTSE 100 has lagged behind the S&P 500, largely due to the latter’s dominance by a handful of large technology firms, known as the “Magnificent Seven.” However, the FTSE’s minimal direct involvement in AI-related firms has recently positioned it as an "anti-tech index," attracting those wary of the risks facing global technology stocks.

In addition to market dynamics, rising takeover activity is fueling speculation in the UK market. Stocks in two FTSE 250 companies—outsourcing firm Mitie and engineering group Rotork—have experienced significant price gains after agreeing to acquisitions by rival companies OCS Group and ABB, respectively. Mid-cap airline easyJet also saw a rally following its board’s recommendation to accept a £5.7 billion bid from US financial firm Apollo.

IG’s trading data suggest that investor enthusiasm is growing, with the number of UK and Ireland clients trading FTSE 100 shares projected to increase by approximately 34 percent week-on-week if current trends persist. This underscores a renewed appeal for UK equities as the index sets new highs.

Despite the UK market’s current prominence, retail investors have not abandoned the semiconductor sector entirely. IG also reported increased trading activity in US chip makers such as Nvidia, Micron, and Intel, with buy orders slightly outnumbering sells.

Meanwhile, the investment platform InvestEngine observed a more modest rise in demand for London-focused exchange traded funds (ETFs) earlier this year, with activity picking up again in July as the FTSE 100 approached its record levels.