Markets have started 2026 on the front foot, with the FTSE 100 breaking 10,000 and the S&P 500 hitting fresh record highs. It’s an encouraging reminder that staying invested and diversified can pay off even if the pay-off comes later.
If markets had a New Year’s resolution, it looks like 2026’s was “START STRONG and LOCK IN”
Just two weeks into the year, investors have already been given plenty to shout about, and as it stands, most of it is positive.
From record highs in the US to a major milestone for UK stocks, early January has delivered a reminder that momentum can matter just as much as some pretty remarkable news headlines.
Here’s a quick pulse check on how 2026 has kicked off...
The FTSE hits 10,000 points: A long-awaited milestone
The FTSE 100 crossed 10,000 points for the first time,1 marking a major psychological milestone for UK markets. 12 days into the year and the index is already up 2.1% YTD at the close of the market on 12 January.2
While the FTSE doesn’t always grab the same attention as US tech-heavy indices, this move reflects something important: steady earnings, resilient dividends, and renewed interest in UK-listed global businesses.
Energy, financials and consumer staples have all helped push the index higher, benefiting from solid cash flows and more stable valuations.
For long-term investors, it’s a reminder that progress doesn’t always come in flashy bursts.
US markets aren’t sleeping either
Not to be outdone, across the pond the S&P 500 hit a fresh record high early in the year, extending the momentum that carried through the end of 2025.3
Strong corporate earnings, continued optimism around AI-led productivity gains, and expectations of a gentler interest-rate environment have helped keep sentiment buoyant.
Big tech continues to lead the charge, but the rally has also broadened out; with healthcare, industrials and financials joining the move.
It’s an encouraging sign that this isn’t just a narrow, tech-driven rally, but one supported by improving fundamentals from other sectors
What’s driving the positive mood?
A few themes are standing out so far, according to outlook reports for 2026 from some of the big names in wealth management.
Here’s a summary:
Rates optimism: Investors are increasingly confident that central banks are done with higher interest rates, easing pressure on both businesses and consumers. J.P Morgan
Earnings resilience: Companies have largely adapted to higher costs and slower growth, and profits are holding up better than feared. Morgan Stanley
Global diversification: Strength isn’t confined to one region — UK, the US and parts of Europe have all started the year on solid footing. Goldman Sachs
That combination has helped set a constructive tone, even with plenty of geopolitical and economic uncertainty still in the background (from you know who).
What this means for investors
A strong start to the year doesn’t guarantee smooth sailing as markets rarely move in straight lines. But it does reinforce a few timeless investing lessons.
Momentum can return quickly after a period of uncertainty. Diversification still matters. And staying invested often beats trying to time the perfect entry point.
For anyone who felt hesitant after last year’s volatility, these early weeks of 2026 are a useful reminder: markets don’t wait for everything to feel comfortable before moving higher.
How Chip can help
Whatever the weather, investing works best when it’s simple, diversified and long-term.
With Chip, you can invest across a range of global funds, from UK and US markets to all-world options, so you’re not relying on any single index or headline to do the heavy lifting.
You can start with as little as £1, auto-invest regularly to stay consistent, and keep your portfolio aligned with your goals, without trying to predict what markets will do next.
2026 is already showing us, markets can move quickly. So don’t get left behind.
Stephen.
Source: 1 Guardian 2 London Stock Exchange 3 Reuters 4 J.P Morgan 5 Morgan Stanley 6 Goldman Sachs
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Important to know: When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than your original investment.
1Tax treatment depends on individual circumstances and may be subject to change in the future.