On Monday, the FTSE 100 index reached the 10,000-point milestone for the first time. This accomplishment represents a historic high-water mark for the index. The index jumped to an all-time intraday high of 10,046.3 points shortly after markets opened. Such a significant leap marks an increase of more than 1% just in the first hour of trade. In doing so, the index fell back under the 10,000 barrier once again. Nonetheless, it still pulled off an amazing gain of 115 points over its prior close.
The FTSE 100 also serves as a benchmark index. It is designed to measure the performance of the 100 biggest companies listed on the London Stock Exchange. In the last year, it’s exploded beyond belief. Much of this growth is evidenced in leaps and bounds in sectors including precious metal mining, defense, and financial services. The index has already skyrocketed over 21% since this time last year. At its lowest, it was shy of 8,260 points.
Industry experts believe this bumper rise is a signal that the FTSE 100 has finally regained the trust of investors. “A vote of confidence in Britain’s economy and a strong start to 2026,” said the Chancellor regarding this remarkable achievement.
It has consistently outpaced performance of several other major international markets as well, including France’s CAC 40 and the US’s S&P 500 index. Its dominance is due to a robust ecosystem of big foreign multinationals. Therefore, its performance is not necessarily a direct reflection of the UK economy’s overall health. Today’s advance represents a growing belief amongst investors that UK shares are on the up.
Market analyst Dan Coatsworth noted the strong performance of companies like Rio Tinto, Babcock and Rolls-Royce. In fact, their success has had the greatest impact on moving the index higher. He underscored that investing in these kinds of firms is more lucrative than putting money in a bank account. “She has been banging the drum about the merits of investing over parking cash in the bank,” Coatsworth stated, referring to a growing trend among investors towards equities rather than traditional savings.
Other companies among 2025’s high achievers are fashion retailer Next followed by luxury brand Burberry. Gold and silver prices are blasting off at the moment. This demand, along with a surge in global defense spending, is pushing the FTSE 100 ever higher.
Yet even as the index has rallied, worries are still high about the super-high valuations in the US tech sector. This has caused many investors to consider the UK market, and more specifically the FTSE 100, as an attractive option. “Investors often seek solace in companies whose goods and services should be in demand no matter what’s happening in the world,” Coatsworth added.
The break of the 10,000-point threshold is seen as a psychologically significant watermark for the FTSE 100. This does not just show the best kind of sentiment among investors but highlights the vast opportunities that exist in UK markets right now.