FTSE 100 Nears Record High While Tech Stocks Sell Off
The FTSE 100 climbed to its highest closing level since its record close in February 2026, even as a sharp sell-off in US and Asian technology and semiconductor stocks wiped billions off global markets. The rally has been led by defensive UK names such as Unilever, while chipmakers including Micron and several Korean firms have tumbled on doubts about the durability of AI-related spending. This guide explains why the FTSE 100 is behaving differently from tech-heavy indices, which stocks are driving the move, and what to watch next, including today's Federal Reserve interest rate decision. This information is for general education only and does not constitute financial advice.
Key takeaway
- The FTSE 100 closed at 10,876 points on 28 July 2026, its best level since the record close of 27 February 2026 (Trading Economics, 28 July 2026).
- Gains have been led by consumer goods, chemicals and data/analytics stocks, with Unilever (+8.45%), Croda International (+7.45%) and Experian (+6.12%) among the day's top performers (Trading Economics, 28 July 2026).
- A sharp sell-off in Asian and US chip stocks has been linked by reporting to concerns about the sustainability of AI-related spending (CNBC, 28 July 2026).
- The FTSE 100's comparatively low exposure to technology stocks has repeatedly been cited by market commentators as a factor behind its resilience during recent bouts of tech-sector volatility (Sharecast/Yahoo Finance UK).
- Today's Federal Reserve interest rate decision, due mid-afternoon UK time, is the next scheduled event that could move sentiment across global markets, including UK equities.
How high has the FTSE 100 climbed?
The FTSE 100 closed at 10,876 points on 28 July 2026, up 0.88% on the day, marking its highest close since the index's record high on 27 February 2026 (Trading Economics, 28 July 2026).
10,876
FTSE 100 close, 28 Jul 2026
+0.88%
Day change
27 Feb 2026
Date of prior record close
The index has gained roughly 3.7% over the past month, according to Trading Economics data dated 28 July 2026. Past performance is not a reliable indicator of future results, and index levels can move sharply in either direction within a single trading session.
Why is the FTSE 100 rising while tech stocks sell off?
The rally has been driven largely by strong results from a handful of large UK companies, at the same time as investors globally have moved money away from technology and semiconductor stocks.
The FTSE 100's sector mix explains the resilience
Unlike the technology-heavy Nasdaq, the FTSE 100 is weighted toward banks, energy, commodities, consumer staples and healthcare, sectors with comparatively little direct exposure to AI infrastructure spending. Market commentators, including analysts at IG, have pointed to this sector mix as a recurring reason the index has found support during recent periods of tech-sector volatility (Sharecast/Yahoo Finance UK).
Which UK stocks are driving the rally?
According to Trading Economics data dated 28 July 2026, the day's biggest gainers on the FTSE 100 were Unilever (+8.45%), Croda International (+7.45%) and Experian (+6.12%). The biggest fallers were Barclays (-5.63%), Lion Finance Group (-3.57%) and Games Workshop Group (-2.62%).
| Stock | Move on 28 Jul 2026 | Source |
| Unilever | +8.45% | Trading Economics |
| Croda International | +7.45% | Trading Economics |
| Experian | +6.12% | Trading Economics |
| Barclays | -5.63% | Trading Economics |
| Lion Finance Group | -3.57% | Trading Economics |
What's happening in the global tech sell-off?
Chip and AI-linked stocks have fallen sharply over the past two trading sessions. South Korea's Kospi index, dominated by chipmakers Samsung and SK Hynix, suffered one of its steepest declines of the year as investors reassessed the sustainability of AI-related spending (CoinDesk, 29 July 2026).
In the US, Micron shares fell more than 4% in premarket trading, with Nvidia down around 1.2% and Intel and AMD both more than 3% lower, as the semiconductor sell-off in Asia spread to Wall Street (CNBC, 28 July 2026).
UK traders sometimes follow moves like this using a CFD (Contract for Difference), a leveraged product that lets traders speculate on price movements without owning the underlying asset.
Quick fact
As of the FTSE 100's 28 July 2026 close, the index had not fallen below 10,876 points, even as Asian chip stocks logged some of their steepest declines of the year (Trading Economics; CoinDesk).
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What could move the FTSE 100 next?
The most immediate scheduled catalyst is today's Federal Reserve interest rate decision, due to be announced at 2pm US Eastern Time (7pm UK time), followed by a press conference from Fed Chair Kevin Warsh.
Economists polled by FactSet expect the Fed to hold its benchmark rate at 3.50%-3.75% for a fifth consecutive meeting, though markets are pricing in a meaningful probability of a surprise move (CBS News, 27 July 2026). This is not a guarantee of future performance, and rate decisions can move global risk sentiment, including UK equities, in either direction.
What UK investors and traders may want to watch
- The tone of the Fed's statement and press conference this afternoon
- Whether the tech and chip stock sell-off continues to spread or stabilises
- Any fresh corporate earnings from FTSE 100 constituents in the coming days
How can UK investors get exposure to the FTSE 100?
UK investors have several options for tracking or gaining exposure to the FTSE 100, depending on whether they want a longer-term investment or a shorter-term trading position.
- Index tracker funds or ETFs (Exchange-Traded Funds), which can be held inside a stocks and shares ISA (Individual Savings Account)
- Direct share dealing in individual index constituents
- CFDs or spread bets on the index itself, typically used by shorter-term traders
Tax treatment depends on individual circumstances and may be subject to change. Seek independent advice. Losses can exceed your initial deposit when trading CFDs or spread bets with leverage.
FAQ
Has the FTSE 100 hit a new record high?
Not quite. The index's most recent close of 10,876 points on 28 July 2026 is its best level since its record close of 27 February 2026, rather than a fresh all-time high (Trading Economics, 28 July 2026).
Why are tech stocks selling off right now?
Reporting has linked the sell-off to investor concerns about whether current levels of AI-related infrastructure spending are sustainable, with chipmakers in South Korea and the US among the hardest hit (CNBC; CoinDesk, 28-29 July 2026).
Does a tech sell-off always help the FTSE 100?
Not necessarily. The FTSE 100's lower weighting toward technology has coincided with relative strength during some recent tech-sector routs, but past patterns are not a reliable guide to how markets will behave in future.
What is today's Federal Reserve decision and why does it matter to UK markets?
The Fed is due to announce its latest interest rate decision this afternoon UK time. Rate decisions can influence global risk appetite, which in turn can affect UK equities, though the direction of any impact cannot be predicted in advance.
How can I invest in the FTSE 100?
Common routes include index tracker funds or ETFs (often held in an ISA), direct share dealing in constituent companies, or CFDs and spread bets for shorter-term trading. Each carries different risks and is not personalised advice.
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Past performance is not a reliable indicator of future results.
Tax treatment depends on individual circumstances and may be subject to change. Seek independent advice. ISA allowance figures are correct as of the 2026/27 tax year — check gov.uk or HMRC for current limits.
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