FTSE 100 Reaches 10,000 Intra-Day Milestone in 2026, Driven by Non-AI Sectors

This analysis is based on the Barrons article reporting the FTSE 100 milestone [4], complemented by additional market data [0] and external reports [1][2][3]. On January 2, 2026, the FTSE 100 reached an intra-day high of 10,000 points, marking a historic milestone after closing 2025 with a 21.51% gain (the index’s strongest performance since 2009) [0]. Despite the index closing just below the 10,000 level at 9951.14, the intra-day breach of this psychological barrier strengthened investor confidence, driving a 0.5% increase in the index by 1023 GMT on the same day [1].

The rally was led by non-technology sectors, distinguishing the FTSE 100 from AI-exposed indices like the S&P 500. Key contributors included mining stocks (Fresnillo, Glencore, Antofagasta), defense firms (Rolls-Royce, Babcock), utilities, banks, and oil companies [1][2][3]. Fresnillo, a silver miner, stood out with a 3% gain on January 2 and a five-fold increase in its share price throughout 2025, while defense companies also recorded stellar gains linked to geopolitical tensions [2][3]. Medium-term support for the index is anchored by resilient corporate earnings and expectations of potential rate cuts from the Bank of England, which would benefit interest-sensitive sectors like banks and utilities [3].

1. Shift in UK Market Perception
   : The FTSE 100’s milestone and 2025 outperformance challenge the narrative of the UK market as a long-underperformer, with its rally driven by mature, non-cyclical sectors rather than AI-related growth [1][4].
2. Sector Diversification Advantage
   : Unlike AI-heavy indices, the FTSE 100’s exposure to mining, defense, and energy sectors provided resilience and diversification in 2025, a trend that may continue in 2026 [3][4].
3. Psychological Barrier Impact
   : The 10,000-point milestone is expected to attract new investor interest, strengthening the index’s investment case beyond short-term sentiment [3].

• Risks
  : Geopolitical de-escalation could reverse gains in the defense sector; commodity price volatility poses a threat to mining stocks; weak UK economic data may overshadow the milestone if it impacts corporate earnings; delayed or smaller-than-expected Bank of England rate cuts could harm market sentiment [2][3].
• Opportunities
  : Rate cuts would benefit interest-sensitive sectors like banks and utilities; the index’s strong performance may attract more international investment; sustained earnings momentum in leading sectors could drive further gains [3].

The FTSE 100’s historic 10,000-point intra-day milestone on January 2, 2026, follows a 21.51% gain in 2025. The rally is driven by non-AI sectors, including mining, defense, energy, and utilities, distinguishing it from tech-led global indices. While the index closed below 10,000 on the day, the milestone strengthens investor sentiment, with medium-term support from expected rate cuts and resilient earnings. Decision-makers should monitor geopolitical tensions, commodity prices, and Bank of England policy timelines to assess the sustainability of gains.