The stock market witnessed a significant milestone today as the FTSE 100 index surpassed the 10,000-point mark for the first time. In the initial trading hours, the blue-chip index peaked at 10,046 points before experiencing a slight pullback post the new year holiday.
The FTSE 100 represents the top 100 UK companies listed on the London Stock Exchange, impacting not just investors but also individuals with pension investments. The index’s stellar performance in 2025, with a 21.5% surge, was driven by notable gains in sectors like precious metal mining, defense, and financial services.
Global political uncertainties and sluggish UK economic growth have attracted investors to the stock market. The FTSE 100 closed at 9,931.38 in 2025, surpassing record highs multiple times throughout the year and outperforming European and US counterparts like France’s Cac 40 and New York’s S&P 500.
Breaking the 10,000 milestone marks a historic moment for the FTSE 100 in 2026, according to Dan Coatsworth, AJ Bell’s head of markets. Chancellor Rachel Reeves highlighted the significance of the index’s achievement, emphasizing the benefits of investing in UK shares over keeping cash reserves in banks.
Rachel Reeves, the Chancellor, viewed the FTSE 100’s milestone as a vote of confidence in the UK economy, following the announcement of changes to the cash ISA annual limit to promote stock market investments during her Budget last November. From April 2027, individuals under 65 will be limited to depositing £12,000 annually into a cash ISA, down from the current £20,000 limit. Meanwhile, over-65s can still contribute £20,000 to cash ISAs, maintaining the overall £20,000 ISA limit for diversified savings options.