FTSE 100 hits 10,000 mark for first time

On the first trading day of the year, the FTSE 100 index has risen above 10,000 points for the first time, marking a major stock market milestone. In 2025, the index's shares rose at a whopping 21%, putting the benchmark's reading more than 21% above that of a year ago, when it stood at just over 8,260. It set a new all-time record of 10,046. Before falling below the 10,000 mark, 3 points were dropped. Stock rises are good news for investors, particularly those with a pension or other investments that are invested in the stock market. However, major multinational corporations dominate the London index, so it is not a clear representation of the UK economy's performance.

The FTSE 100, which monitors the performance of the 100 largest companies listed on the London Stock Exchange, has soared over the past year, thanks to strong gains in certain industries, such as precious metal mining, defense, and financial services. Rising gold and silver prices boosted Rio Tinto, as well as increasing global defense spending, which included Babcock and Rolls-Royce, amid increasing economic uncertainty and geopolitical tensions. As trading returned from the new year holiday, the British benchmark index set a new all-time intraday record, up more than 1% in the first hour to reach 10,046. 3 points - up 114. The figure is up 9 points from its previous record before falling back below the threshold. Susannah Streeter, an independent financial analyst, said the 10,000-point mark was a psychologically important milestone and that London's blue-chip index was back in favour with investors.

Concerns continue to swirl around the super-high valuation of the US tech indUStry,

she said, making the UK market more attractive. Dan Coatsworth, head of markets at investment company AJ Bell, said crossing the 10,000-point was a New Year's gift to chancellor Rachel Reeves, who has been calling for more investment in the UK stock market to boost economic growth.

She has been banging the drum about the benefits of investing over parking cash in the bank.

The FTSE 100's achievements show what's possible when buying UK shares,

he said. Although London-quoted firms were often described as

old and boring,

the combination of industries, including mining and banking, appealed to investors looking for stability in turbulent times, according to he.

Investors often seek solace in companies whose products and services should be in demand no matter what's going on in the world.

For example, we all have to pay insurance or water bills, or those that are new to buying cigarettes or vaping, and the FTSE 100 has a number of businesses focusing on these topics.

The FTSE's break-through, according to the chancellor, was "a vote of confidence in Britain's economy and a good start to 2026. The FTSE index closed 2025 at 9,931. After consistently hitting record highs throughout the year, 38. It also outperformed many other key markets, including France's CAC 40 and the US's broad-based S&P 500, which included France' Although it is often thought of as a measure of Britain's corporate dynamism, the FTSE 100 largely reflects global market activity because the majority of its firms receive a substantial share of their income from overseas rather than from the UK economy. Its rise has triggered a worldwide trend, with stock markets soaring in the hopes that artificial intelligence (AI) will improve company profits. However, some analysts have cautioned that if high hopes for AI are not realized or don't appear quickly enough, the enthusiasm could dwindle and cause a dramatic decline in share prices.