The UK's premier equity benchmark, the FTSE 100, achieved a historic milestone on Wednesday, February 11, 2026, closing at an unprecedented 10,472.11. This represented a robust gain of 118.27 points, or 1.1%, surpassing its prior record close of 10,402.34 set just a week earlier on February 4. The rally was primarily fueled by strength in the basic materials and financial sectors, providing a stark contrast to the pronounced weakness seen in wealth management shares, which were battered by renewed anxieties over artificial intelligence disruption.
Divergence in Market Performance
While the blue-chip index soared, the domestically focused FTSE 250 told a different story, edging lower by 0.2% to finish at 23,416.54. This underperformance highlights a growing divergence, with multinational giants benefiting from global commodity trends while more UK-centric companies faced headwinds. The session's standout decliner was wealth manager St. James’s Place, whose shares plummeted 13.39% to £12.55. Trading volume surged to approximately 8.2 million shares, dramatically exceeding its 50-day average and signaling intense investor scrutiny.
AI Fears Rattle Financial Services
The sharp sell-off in wealth management firms was triggered by specific developments in the financial technology space. Market sentiment soured following news that U.S. startup Altruist had launched new AI-driven tax planning tools, sparking fears that traditional asset and wealth managers could face significant margin pressure and client attrition. This concern extended beyond St. James’s Place, with peers including Aberdeen, Quilter, IG Group, and AJ Bell all registering declines between 2.4% and 6% during the trading day. The episode underscores a broader market reassessment of which business models are most vulnerable to rapid technological innovation.
Conversely, mining heavyweights Rio Tinto and Anglo American advanced, each adding around 2.5%, buoyed by firmer copper prices. Banking shares also contributed positively to the FTSE 100's ascent. In other corporate news, housebuilder Barratt Redrow reported a 13.6% drop in its first-half adjusted pre-tax profit to £199.9 million, citing rising construction costs that continued to outpace selling prices. The company reduced its interim dividend to 5 pence per share but maintained its full-year home completion targets. Its shares experienced volatility, ultimately recovering from early losses to close at 388.2 pence.
Global and Domestic Macro Drivers
Investor attention was divided between international data and looming domestic indicators. Stronger-than-expected U.S. employment figures, which showed 130,000 nonfarm payrolls added in January, prompted a recalibration of interest rate expectations. Traders scaled back bets on imminent Federal Reserve easing, pushing U.S. Treasury yields and the dollar higher. This global shift in yields presents a potential challenge for equity valuations, particularly for growth-oriented sectors.
All eyes are now on the UK's preliminary fourth-quarter Gross Domestic Product (GDP) report, scheduled for release at 0700 GMT on Thursday. This data is considered a critical input for the Bank of England's monetary policy committee. A weaker-than-expected reading could bolster the case for earlier rate cuts, while a strong figure might reinforce a more hawkish stance. The outcome is likely to directly influence the pound and UK government bond (gilt) yields, setting the tone for the next market session.
Additional Corporate and Political Developments
Elsewhere in the market, shares of London Stock Exchange Group (LSEG) were volatile following a Reuters report that activist investor Elliott Management had built a stake and was advocating for strategic changes, including a larger share buyback program. This news comes as LSEG itself, along with fellow information provider RELX, has faced investor questions about the long-term impact of AI on its core data and analytics businesses. In the political sphere, UK assets faced pressure earlier in the week amid mounting scrutiny on Prime Minister Keir Starmer, reminding markets of the persistent overlay of domestic political risk.
The record close for the FTSE 100, while notable, exists within a complex tapestry of crosscurrents. The powerful rally in commodity-linked stocks and banks provided sufficient momentum to drive the index to new heights, yet significant sectoral weaknesses and looming macroeconomic tests suggest the path forward may be uneven. Investors remain vigilant, balancing optimism over record highs against the disruptive threat of AI, uncertain central bank policy, and fragile economic data.
