The stock market milestone was hit today as the FTSE 100 index surged above 10,000 points for the first time. Initially climbing to 10,046 points within the opening hour of trading, it later dipped slightly after the holiday break.
The FTSE 100 index comprises the top 100 UK companies listed on the London Stock Exchange, with its performance being significant for both investors and individuals with pension investments. Notably, the index recorded its strongest performance since 2009, closing the year 21.5% higher, with notable gains in sectors such as precious metal mining, defense, and financial services.
Investor interest in the stock market has been on the rise due to 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 several European and US indices.
Market analysts, including Dan Coatsworth, the head of markets at AJ Bell, highlighted the significance of the index breaching the 10,000 level, making it a historic moment in the index’s history since its inception in 1984. Chancellor Rachel Reeves welcomed the milestone, emphasizing the importance of investing in the market over keeping funds in bank accounts.
Reeves also announced changes to the cash ISA annual limit in a move to encourage more individuals to engage in stock market investments. Starting from April 2027, individuals under 65 will only be able to deposit up to £12,000 annually into a cash ISA, reduced from the current limit of £20,000. However, over-65s can still contribute up to £20,000 into cash ISAs, maintaining the overall £20,000 ISA limit for combined cash and stocks and shares ISAs.