Markets

The S&P 500 index closed lower in the last session, shedding 0.05% to finish at 7,354.02 points, primarily driven by a significant sell-off in technology stocks. This decline was largely attributed to concerns over AI data centre costs and reports of OpenAI considering a delayed IPO, alongside Apple's 6.1% drop following price increases. Falling crude oil prices, with Brent futures dropping to $72.84 a barrel, and easing bond yields also influenced the session, while mixed economic data, including a wider US goods trade deficit, added to the complex market picture.

The NASDAQ 100 index closed lower in the last session, falling 1.09% to 29,118.24 points, primarily driven by a broad sell-off in technology stocks. Concerns over rising artificial intelligence (AI) infrastructure costs and a reassessment of AI company valuations weighed heavily on the sector, exacerbated by Apple's announcement of price increases due to surging memory chip costs. Shifting expectations for Federal Reserve policy, influenced by a broadly in-line PCE inflation report and comments from Fed officials, also contributed to the market's decline, alongside a significant plunge in crude oil prices.

The Dow Jones Industrial Average closed marginally lower in the last session, shedding 0.09% to finish at 51,876.11 points. This slight decline was influenced by falling crude oil prices, which eased inflation concerns and contributed to declining bond yields across the US and Eurozone. Geopolitical tensions, particularly those related to the war in Iran and the Strait of Hormuz, also played a role, alongside central bank commentary and various economic data releases, including the preliminary U.S. trade balance and the Michigan Consumer Sentiment Index.

The FTSE MIB index closed lower in the last session, shedding 1.19% to finish at 51,168.53 points. This downturn was largely attributed to a broader tech sell-off and profit-taking in AI-related stocks, alongside rising geopolitical tensions. Despite Italian borrowing costs falling to multi-month lows at an auction, and oil prices dipping as shipping through the Strait of Hormuz resumed, the market remained cautious, further impacted by Italy's antitrust probe into Microsoft regarding alleged unfair commercial practices.

The FTSE Mid Cap index closed down 1.69% at 61,571.24 points in the last session, having traded between a high of 62,364.34 points and a low of 61,285.61 points. This decline was largely attributed to a 2% drop in crude prices, which negatively impacted energy stocks, alongside broader concerns over US stocks and a tech selloff. Weakness in the housebuilder sector also contributed, with Berkeley Group down 4.7% following a planning permission dispute.

The CAC 40 index closed 0.80% lower at 8,364.20 points in the last session, influenced by a combination of factors including stronger-than-expected US inflation figures and an upward revision of US GDP, which strengthened expectations of prolonged restrictive monetary policy. This decline was further exacerbated by a global tech sector downturn, with European chip and advanced technology manufacturers experiencing falls, as institutional funds engaged in profit-taking and rebalancing after a successful second quarter. Additionally, the cooling of the USA-Iran conflict led to fading speculative enthusiasm for AI-related companies, while broader political uncertainty across Europe also contributed to subdued investor confidence.

The CAC Next 20 index closed 0.45% lower at 12,008.07 points in the last session, having traded between a day high of 12,042.76 points and a low of 11,943.99 points. This decline mirrored broader European trends, influenced by a global technology sell-off driven by artificial intelligence valuation concerns and rising crude oil prices due to geopolitical tensions in the Strait of Hormuz. Furthermore, ongoing inflation worries have led markets to price in further central bank rate hikes, contributing to the downward pressure on the index.

The FTSE 100 index closed lower in the last session, falling 0.34% to 10,494.06 points. This decline was primarily driven by a global sell-off in technology stocks, falling crude oil prices, and ongoing geopolitical tensions in the Middle East, including an Iranian strike on a cargo vessel. Energy and other commodity-related stocks, such as Shell and BP, faced headwinds due to the drop in oil prices and a stronger US dollar.

The FTSE 250 index closed lower in the last session, shedding 0.24% to finish at 23,104.93 points. This decline was primarily driven by a global sell-off in technology stocks amid AI uncertainty, falling commodity prices which impacted energy giants like Shell and BP, and ongoing geopolitical tensions in the Middle East. Additionally, the UK's political landscape, with the resignation of Keir Starmer and anticipation surrounding Andy Burnham's fiscal policies, contributed to the market's backdrop.