​​​FTSE 100 breaks new ground

​The FTSE 100 touched a fresh all-time high, outperforming European peers as strength in oil and mining stocks offset continued weakness in technology names. The index benefited from its heavy weighting toward commodities and old economy stocks, a rare advantage in a market increasingly nervous about artificial intelligence (AI) disruption.

​BP and Shell both rose around 2% as Brent crude oil climbed toward $68 a barrel, providing support for the energy-heavy index. Miners also advanced as gold pushed back above $5000 per ounce and silver rebounded sharply from recent lows.

GlaxoSmithKline (GSK) lifted the index after posting strong results and reiterating guidance, with shares rising as much as 1.7% to their highest level since 2001. Analysts described the pharmaceutical giant's update as "good enough" to justify the breakout above long-term resistance.

​Commodities and deal activity support UK rally

​The rally in oil and precious metals provided crucial support for the FTSE 100, with the index's commodity bias proving an asset rather than a liability. Brent crude's move toward $68 reflects supply tightness and ongoing geopolitical risks, benefiting the UK's large energy contingent.

​Gold's return above $5000 per ounce and silver's sharp rebound underscore renewed haven demand amid technology sector turbulence. Miners responded positively, adding weight to the index as investors rotated away from growth stocks into tangible assets.

​Deal activity also bolstered sentiment, with Beazley jumping about 9% after Zurich raised its takeover offer. The move reinforces a broader trend of overseas bids for UK-listed companies, highlighting perceived value in London's undervalued market.

​Sterling rose about 0.2% to above $1.37 against the US dollar, while gilt yields remained little changed across the curve. The stability in rates markets suggests investors view United Kingdom (UK) assets as relatively insulated from the AI-driven volatility hitting US tech stocks.

​Wall Street tech rout intensifies

​US stocks fell sharply as investors worried that AI could intensify competition and compress margins for established software firms. The sell-off hit major technology names hard, with sentiment fragile ahead of earnings from Alphabet and Amazon later this week.

NVIDIA and Microsoft both dropped almost 3%, while Salesforce, Datadog and Adobe fell around 7%. Intuit plunged 11%, dragging the S&P 500 software and services index down 3.8% for a fifth consecutive session.

​The rout reflects growing unease about how quickly AI could disrupt existing business models and whether incumbent software companies can defend their margins. Investors are pricing in the risk that new AI-native competitors could undercut pricing and erode market share across the sector.

​Despite the broader weakness, the Dow Jones lost just 0.34% thanks to strength in industrial and retail names. Walmart rose about 3% to become the first brick-and-mortar retailer to reach a $1 trillion valuation, underscoring divergent fortunes across sectors.

​AI winners and losers emerge

​Not every AI-exposed stock suffered in the sell-off, with clear distinctions emerging between perceived winners and losers. Palantir jumped nearly 7% after posting strong results, bucking the broader rout as investors rewarded companies demonstrating clear AI monetisation strategies.

Advanced Micro Devices (AMD) slipped 1.7% ahead of its earnings report, suggesting caution rather than panic among investors who want to see proof of sustained demand. The chipmaker's performance contrasts with NVIDIA's steeper decline, highlighting different risk profiles within the semiconductor space.

​PayPal plunged 20% on a weak 2026 profit outlook, showing how quickly the market punishes companies that fail to articulate credible AI-driven growth plans. The payments giant's warning rattled investors already concerned about margin pressure and intensifying competition.

​Healthcare weighs on US sentiment

​Obesity drugmakers sold off sharply after Novo Nordisk warned of a steep sales decline, sending its US-listed shares down almost 15%. The warning caught investors off guard and raised questions about demand sustainability in what had been viewed as a high-growth category.

​Eli Lilly and smaller obesity-focused peers also declined as the market reassessed growth assumptions for weight-loss treatments. The sector had been a bright spot in healthcare, making the reversal particularly painful for investors who had piled in expecting years of uninterrupted expansion.

​Asian markets follow Wall Street lower

​Japan's Nikkei 225 slipped 0.78% after touching a recent record high, as software and chip-related stocks fell sharply in sympathy with the US rout. The index's pullback suggests Asian investors are taking Wall Street's AI anxiety seriously, particularly given Japan's exposure to the semiconductor supply chain.

​Tokyo's technology names mirrored the global sell-off, with concerns about AI disruption fears spreading beyond US borders. The move shows how interconnected global equity markets have become, particularly in growth sectors where sentiment shifts rapidly across time zones.