The S&P 500 hit a brand new excessive this week, overtaking the FTSE 100 for the primary time this yr

After lagging for a lot of the yr, the S&P 500 is now up about 12.6% yr to this point, whereas the FTSE 100 is up roughly 11.97% as of mid-September 2025. The S&P 500 touched a contemporary excessive of 6,624 factors on Tuesday 16 September. In the meantime, the FTSE 100 has flatlined a bit, with development underneath 1% over the previous 30 days.

This shift suggests international investor sentiment could also be altering. The FTSE has been bolstered this yr by its excessive publicity to vitality, financials, industrials, and defence – sectors that profit from greater rates of interest, commodity power, and geopolitical concern. In the meantime, the S&P 500 has been extra uncovered to development and expertise names, lots of which have come underneath strain on valuation issues, regulatory threat, and weak macro alerts within the US.

I wouldn’t say which means the FTSE is in any bother – moderately that the US market is catching up after an uncommon interval of underperformance.

With the US Federal Reserve anticipated to chop rates of interest this week, the temper has modified. If borrowing prices ease, it usually helps corporations with heavy debt burdens or these whose development will depend on accessible credit score.

All indicators level towards a 25-basis level fee lower. That is pushed by weak labour information and inflation pressures which can be easing however nonetheless current. For an investor, this might mark the beginning of a looser financial coverage surroundings. Nevertheless, a lot will depend on how persistent inflation proves, and the way clearly the Fed conveys its trajectory for future fee strikes.

S&P 500 corporations in the true property funding belief (REIT) sector, financials, and shopper discretionary are amongst these more likely to acquire from this shift in coverage.

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An S&P 500 inventory that might profit

One S&P 500 inventory that might profit is VICI Properties (NYSE: VICI), a REIT targeted on gaming, hospitality, leisure. and leisure properties. I believe it’s inventory for traders to think about when enthusiastic about fee cuts.

VICI at the moment affords a dividend yield of 5.5% with a payout ratio of round 66%. This means it has ample earnings to proceed masking funds. That is mirrored in its profitability, with a web margin estimated to be above 70% in current reporting. 

The stability sheet additionally appears manageable, with a low debt-to-equity ratio and regular income development. Notably, with $46bn in belongings, it’s one of many largest REITs within the US.

Naturally, it faces some REIT-related dangers. The enterprise will depend on its tenants (casinos, lodges, leisure) sustaining robust operations. Financial shocks, weak tourism, or regulatory adjustments may harm money move, resulting in disappointing outcomes and a share value dip.

Last ideas

The S&P 500’s current nudge previous the FTSE 100 displays altering investor preferences. There’s a transfer away from purely defensive or worth performs towards development and rate-sensitive names now that the Fed is loosening.

In that surroundings, REITs like VICI Properties look fascinating. Whereas not with out threat, I believe VICI is one inventory that’s nicely positioned to profit if charges proceed falling. 

For somebody constructing international publicity, combining FTSE-based worth/defensive names with a number of well-chosen S&P 500 REITs may assist stability development and earnings in a shifting macro backdrop.