The FTSE 100 slipped around 0.6% on Friday as a sharp sell-off in major US technology stocks spilled over into European markets. The weakness came after a near-2% decline in the NASDAQ Composite, with renewed concerns over stretched valuations in the AI and semiconductor sectors driving risk aversion across global equities.

Tech Contagion Hits Sentiment

Heavy losses in high-growth US names such as Tesla and Palantir reignited volatility, dragging on market confidence and sparking broad profit-taking across global indices. London’s blue-chip index mirrored the decline, with cyclical and growth-linked stocks under pressure.

Rightmove Leads Declines

Rightmove was the FTSE’s biggest faller, dropping sharply after warning of slower profit growth in 2026. The company cited increased investment in AI and technology as the reason for tighter margins — a move that investors interpreted as near-term earnings risk despite its longer-term strategic focus.

Analyst Outlook

While some investors fear this could mark the start of a wider correction, analysts see the pullback as part of a healthy market reset following strong year-to-date gains. They suggest short-term volatility may offer selective entry points for investors positioned for a continued recovery in global growth.

Bottom Line

The latest declines underline how closely UK markets remain tied to sentiment in the US. With macro data, inflation updates, and earnings season ahead, traders are likely to stay cautious — balancing strong fundamentals against a jittery global backdrop.