FTSE 100 Hits Record High Despite Tech Turmoil

The FTSE 100, London’s blue-chip stock index, soared to a fresh record on February 4, 2026, defying mounting anxieties over artificial intelligence disruption in the technology sector. While software and data firms reeled from the fallout of Anthropic’s new AI-powered legal automation tool, heavyweight industries—oil, mining, healthcare, and consumer goods—powered the index to new heights. GSK, the British pharmaceutical giant, led the charge, with its shares leaping to levels unseen in over two decades after a robust earnings report and an optimistic outlook for 2026.

This latest rally saw the FTSE 100 touch an intraday record of 10,395.64, a gain of 0.8% or 81.05 points, according to Bloomberg and Evening Standard. At its peak, the index was up as much as 1.3% on the day, brushing off the sectoral losses that have dogged tech and data stocks since Anthropic’s AI announcement. The British pound also edged up 0.2%, trading above $1.37, while gilt yields remained steady—signs of growing confidence in UK markets despite global volatility.

What’s behind this dramatic divergence? The answer lies in the FTSE 100’s unique composition. Unlike its American counterparts, the index has only a modest exposure to technology, with software and data companies forming a small fraction of its total value. So, while AI-exposed firms like RELX, London Stock Exchange Group (LSEG), Sage, Rightmove, and Informa continued to slump, their declines were handily offset by surging oil majors, miners, and consumer-facing stocks.

GSK, in particular, was a standout performer. The company’s shares climbed 3%, topping 2,000p for the first time in more than twenty years. This capped a year-long rally that has seen GSK’s stock jump by about 40%. The momentum was fueled by a 7% rise in core operating profit to £9.8 billion for 2025, with the final quarter alone delivering a 14% boost to £1.6 billion, thanks to a strong showing in specialty medicines. GSK’s new CEO, Luke Miels, struck an optimistic note, telling shareholders: “We are well placed to move forward in this next phase for GSK—to deliver our outlooks—and to create new value for patients and shareholders.” He reaffirmed the company’s ambitious £40 billion sales target for 2031 and projected turnover growth of 3% to 5% for 2026, with core operating profit expected to rise between 7% and 9%. The company also announced a dividend increase, with the total payout set to rise from 66p per share in 2025 to 70p in 2026.

Insurers also had their moment in the spotlight. Beazley, a Lloyd’s of London insurer, surged 8% to 1,258p after Zurich Insurance tabled an improved takeover proposal worth £8 billion. The new offer is based on a cash price of 1,310p per share plus a 25p dividend for the 2025 financial year. Beazley’s board, which had previously rejected a lower bid as undervaluing the company, said it would be "minded to recommend" the latest terms to shareholders if Zurich made a firm offer. The deal, if completed, would create a global specialty insurance platform with $15 billion in gross written premiums and represents a 59.8% premium to Beazley’s pre-offer price. The sector-wide excitement lifted fellow insurer Hiscox and FTSE 250-listed Lancashire Holdings as well.

Meanwhile, telecoms and retail stocks joined the upward march. BT Group and Vodafone rose 3% ahead of their trading updates, while Tesco led the retail sector with an advance of 14.3p to 449.7p. The positive sentiment extended to housebuilder Berkeley and energy giants BP and Shell, which each rallied 2% amid rising commodity prices. Gold climbed 2% to $5,065, and Brent Crude oil rose 0.6% to $67.76 a barrel, reflecting a broader appetite for risk across global markets.

Yet, it wasn’t all smooth sailing. The tech sector—small but influential—remained under pressure. Data and software companies, including RELX, LSEG, Sage, and Rightmove, continued to slide as investors grappled with the implications of Anthropic’s AI tool for the legal sector. RELX, which owns LexisNexis and Elsevier journals, suffered a double-digit percentage drop on February 3 and edged down further to 2,196p on February 4. LSEG’s shares fell another 6% to 7,002p, extending a rout that has wiped out more than 40% of its value this year. Sage and Rightmove also lost ground, falling 3% and 2% respectively. The selling was driven by fears of increased competition and shrinking profit margins as AI-powered automation becomes more prevalent in professional services.

UBS, however, offered a glimmer of hope for LSEG, stating: “Even though its data is not 100% proprietary, it has the deepest and most complete data set of security prices in the industry and we expect the proliferation of AI models will drive data usage higher, leading to better pricing opportunities for LSEG.” The investment bank set a price target of 11,000p for the company, suggesting that the current selloff might be overdone.

Elsewhere in the financial sector, Santander UK reported a 14% rise in pre-tax profits to £1.51 billion for 2025, despite setting aside another £183 million for motor finance mis-selling. The provision adds to the £295 million already booked in 2024 as part of an industry-wide redress scheme. Santander said it expects further cost efficiencies in 2026 “driven by simplification and automation of our business.” The bank’s recent branch closures will leave it with 244 locations, though it plans to expand its footprint by acquiring smaller rival TSB.

Renewable energy firm SSE saw its shares dip 5p to 2,430p after issuing its third quarter trading update. Despite the broader rally, the firm’s performance was muted, possibly reflecting shifting investor sentiment as energy markets adjust to new supply and demand dynamics.

Market watchers noted that the FTSE 100’s resilience stands in contrast to Wall Street, where tech stocks have faced sharper declines. The Nasdaq Composite finished the previous session down 1.4%, and the S&P 500 slipped 0.8%. US-listed software firms, such as Paypal and Expedia, experienced steep drops, with Paypal tumbling 20% and Expedia 15% after disappointing results. Deutsche Bank observed that the US Software index fell 4.6%, with 104 decliners and only nine risers, reflecting a broader shift from AI euphoria to more careful differentiation between winners and losers in the sector.

Richard Hunter, head of markets at Interactive Investor, summed up the shifting environment: “GSK has delivered a steady performance within a rapidly changing environment, as technology and policy provide both consistent opportunities and threats.” It’s a sentiment that resonates across the FTSE 100—where traditional sectors are showing unexpected strength, even as the tech world faces tough questions about the future.

As the dust settles, investors are left to ponder whether the FTSE 100’s old-guard resilience will continue to outweigh the uncertainties of the AI age. For now, the index’s new record stands as a testament to the enduring power of oil, mining, and healthcare in the face of technological upheaval.