The FTSE 100 has hit a number of record highs early in 2025, even as the US stock market has wobbled.

Is this a sign of investors starting to look for opportunities away from high-flying US shares – and could the UK stock market benefit from that?

On this episode of the Investing Show, Simon Lambert is joined by Richard Hunter, of Interactive Investor, to discuss what’s happening to markets and whether we are seeing signs of investors broadening their horizons.

America’s leading index, the S&P 500 has delivered a 58 per cent total return for investors over the past two full years, driven by the share prices of the so-called Magnificent Seven. The narrower, tech-heavy Nasdaq index has done even better, with a 87.5 per cent return.

But investors are questioning how long this run can continue and whether President Donald Trump’s tariffs and a shake-up of the artificial intelligence trade could disrupt the US tech giants’ run of form.

Meanwhile, the vital question of what will happen to interest rates over the course of the rest of the year remains at the forefront of people’s minds.

Richard explains why expectations are different this year – and how the US, UK and Europe could head in different directions.