Market snapshot: FTSE 100 rebounds after tech sector hammering

Signs of nerves about the AI trade were clear overnight, which has played into the hands of the more defensive UK blue-chip index. ii's head of markets has the latest.

9th October 2026 08:31

by Richard Hunter from interactive investor

Share on

Tech teetered on Wall Street as the fine balance associated with the AI trade came sharply into focus.

Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

OpenAI revealed that its annualised revenue would be short of the amount previously guided, which dragged index heavyweight NVIDIA Corp (NASDAQ:NVDA) down by almost 3%, putting disproportionate pressure on the tech indices, while there were also losses of 5% for Oracle Corp (NYSE:ORCL)and Micron Technology Inc (NASDAQ:MU) and 4% for Advanced Micro Devices Inc (NASDAQ:AMD) and Broadcom Inc (NASDAQ:AVGO). In addition, the US listed stock of Taiwan Semiconductor Manufacturing Co Ltd ADR (NYSE:TSM) fell by 3% despite reporting growth for September which implied better-than-expected revenue for the quarter.

Such moves serve as a timely reminder of the fine balance which not only illustrate the level of expectations tied to the AI trade, but also act as a precursor of what to expect in the imminent earnings season should any of the numbers fall short.

There also appears to be another wave of fundraising on the way from the likes of Space Exploration Technologies Corp Class A (NASDAQ:SPCX), Broadcom and Oracle, with some estimates now putting a figure of $1.5 trillion (£1.13 trillion) needing to be raised for the overall buildout of infrastructure by 2028. This comes at a time when there are obvious pressures on the general cost of borrowing, let alone the fact that at some point investors will demand greater proof of earnings and profits to repay the massive investments so far.

Elsewhere, the other areas of focus for investors had mixed sessions. The oil price initially spiked to dampen the mood on reports that “massive bombing” in the Middle East was imminent, only for President Trump to dial back such expectations by confirming that there will be no attacks before the midterm elections next month. The “productive” ongoing discussions then took some of the froth from the price, which is nonetheless currently trading around $103 per barrel.

Meanwhile, bond yields were more stable, with sentiment helped by some healthy demand for the 10-year and 30-year Treasury auctions suggesting that investors are still willing to buy US government debt, albeit at higher rates to reward them for the higher risk.

The acid test of corporate earnings will begin in earnest next week, as the US banks take centre stage, with updates from Citigroup Inc (NYSE:C), The Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), Bank of America Corp (NYSE:BAC) and Morgan Stanley (NYSE:MS).

Bank stocks have been under pressure leading into the results, with concerns ranging from higher defaults given elevated borrowing costs to the impact on depositors from AI sweeps which could move savings around automatically and therefore erode the traditional inertia which bank customers display. On the other hand, early rumours of record bonuses on Wall Street could imply that the trading and investment banking operations have had a strong quarter.

In the meantime, the main indices remain in good shape even after a bruising day for the more tech-related benchmarks which both moved away from the record highs set earlier in the week. In the year to date, the Dow Jones is ahead by 6.6%, while the S&P500 and Nasdaq have added 13.4% and 17% respectively.

US tech weakness overnight played firmly into the hands of the FTSE100, which flew out of the traps in early trade given its defensive characteristics in the face of volatility elsewhere on the global stage.

Gains were widespread and included stocks related to the stronger copper and gold prices, such as Antofagasta (LSE:ANTO), Endeavour Mining (LSE:EDV) and Fresnillo (LSE:FRES), while broker upgrades lifted both Sainsbury (J) (LSE:SBRY) and preferred supermarket play Tesco (LSE:TSCO) after a strong interim update yesterday.

The telecoms sector was a notable exception, as the recent turmoil around the likes of TalkTalk and competition concerns weighed on not only BT Group (LSE:BT.A), but also Vodafone Group (LSE:VOD) and Airtel Africa Ordinary Shares (LSE:AAF), the latter of which spun off its mobile money business Airtel Money today.

Both BP (LSE:BP.) and Shell (LSE:SHEL)tracked the oil price slightly lower, but for the most part defensive names including but not limited to RELX (LSE:REL) and Sage Group (The) (LSE:SGE) were enough to propel the primary index. The early strength takes the FTSE100 gains to 6% in the year to date, again displaying its attraction as an alternative investment destination away from the mostly euphoric tech trade elsewhere.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Get more news and expert articles direct to your inbox