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The FTSE 100 regained some ground on Thursday afternoon as global equity markets were rocked by the sell-off in tech stocks.
Approaching close, the blue-chip index was up 0.21 per cent at 8,171.08, having spent much of the day in the red. The midcap FTSE 250, however, was 0.50 per cent lower at 20,846.20.
The recovery was led by Unilever, which gained 6.2 per cent on the back of a strong set of results. British American Tobacco also gained 5.1 per cent after maintaining its guidance.
The FTSE 100 was one of the few global markets to make any headway on Thursday after global equity markets were hit by a tech sell-off. Its limited exposure to the tech sector was, for once, a benefit.
Yesterday, the Nasdaq 100 had over a trillion dollars wiped off it, while the S&P 500 fell 2.3 per cent, with Tesla and Alphabet falling 12 per cent and five per cent respectively. Both markets remained in the red on Thursday.
Other drawdowns globally included a six per cent drop from Taiwan Semiconductor and a seven per cent fall from South Korean SK Hynix, which produces key components for AI systems.
The initial driver of those losses yesterday were the earnings releases from Tesla and Alphabet.
“If there was a bubble in the AI and Magnificent Seven part of the market, then last night saw it pop,” said Steve Clayton, head of equity funds at Hargreaves Lansdown.
“With large losses mounting up in the AI space, selling became more widespread, with investors looking to take profits across the technology sector,” he continued.
Dan Coatsworth, investment analyst at AJ Bell, said it was unclear whether this would mark the start of a longer sell-off.
“Whether this is a necessary correction to remove some froth from the market or something more dramatic will depend on forthcoming earnings from the likes of Microsoft, Meta, Apple and Amazon next week as well as AI-star Nvidia at the end of August,” he said.
Back in London, the FTSE 250 was dragged down by some poor corporate updates. Those reporting unimpressive results today included ITV (6.5 per cent drop) and miner Centamin (seven per cent drop).