The stock market milestone was reached today as the FTSE 100 index surged above 10,000 points for the first time. The blue-chip index hit 10,046 points early in the trading day before slightly retreating after the new year break. Comprising the largest 100 UK companies on the London Stock Exchange, the FTSE 100’s performance is crucial not only for investors but also for individuals with pensions tied to the market.

This achievement follows the FTSE 100’s remarkable 21.5% growth in 2025, with notable increases in share prices of companies in sectors such as precious metal mining, defense, and financial services. The market’s attractiveness has been boosted by global political uncertainties and sluggish economic growth in the UK.

Closing at 9,931.38 in 2025, the FTSE 100 surpassed previous record highs throughout the year, outperforming major European and US indices like France’s Cac 40 and New York’s S&P 500. Breaking the 10,000 mark today, the index had previously breached the symbolic 9,000 level in July.

Dan Coatsworth, AJ Bell’s head of markets, hailed the historic moment as 2026 shaping up to be a significant year for the index. Chancellor Rachel Reeves welcomed the milestone, emphasizing the importance of investing in the market over traditional savings. Reeves highlighted the FTSE 100’s success as proof that the UK market offers lucrative opportunities beyond the US stock market.

Expressing confidence in the UK economy, Chancellor Rachel Reeves described the FTSE 100’s breakthrough as a positive start to 2026. This achievement coincided with the Chancellor’s recent announcement of changes to the cash ISA annual limit, aimed at encouraging more people to invest in stocks. Under the new rules effective from April 2027, individuals under 65 will be limited to £12,000 in a cash ISA per tax year, down from the current £20,000 limit. Over-65s can still invest up to £20,000 in cash ISAs, maintaining the overall £20,000 ISA limit, allowing for a split between cash ISAs and stocks and shares ISAs.