FTSE 100 Opens Higher Amid Sell-off in US Tech Stocks

The FTSE 100 opened higher on Friday, defying a sell-off in US technology stocks such as Nvidia, Tesla, and Meta. Investors shifted focus to more traditional sectors, sparking a rally in European indices less dominated by tech companies. This interest in overlooked sectors led to a rise in FTSE 100 shares like Rightmove and JD Sports.

The risk-on sentiment was evident as defensive sectors like utilities and precious metals stocks saw selling pressure. Attention is now on the US session to see if AI-related stocks can bounce back after the overnight sell-off. Investors are also keeping an eye on UK data suggesting a stronger economy, potentially impacting the chances of an interest rate cut next month.

“With a strong economy, MPC policymakers assessing the next moves will have a tough decision come August 1,” said AJ Bell’s Danni Hewson. The market remains dynamic as investors navigate through various sectors and indices in search of opportunities. Subscribe to our newsletter for more updates on market trends and insights.