The FTSE 100 was lower on Thursday as banks and utilities dragged on the index in what was a fairly benign trading session.
London’s leading index was 0.4% lower at the time of writing.
The FTSE 100 has posted a string of minor losses as the index retreats from record highs, but the losses have been minimal, and one strong session for the index will send it back into record territory.
With summer drawing to a close, all eyes were on Nvidia’s results last night for a potential catalyst for the stock market. The company’s earnings didn’t disappoint, but they weren’t enough to spark a rally in Nvidia shares or the broader market. Given Nvidia’s gains in recent months, a minor downtick in the stock price was to be expected, considering the numbers didn’t blow investors away.
“The market was laser focused on the third-quarter guidance from artificial intelligence (AI) chip group Nvidia. Second-quarter results were in line with expectations, and the third quarter guidance was roughly in line with what had pencilled in, but Wall Street wanted more,” said Garry White, Chief Investment Commentator at Charles Stanley.
“Earnings and guidance are usually ahead of analysts’ expectations – and the market was disappointed that there was not a more bullish assessment of current quarter revenue. However, spending on data centres rumbles on and the growth story at the world’s largest company continues. These are still a good set of results – but volatility is likely as the bulls and bears of the AI industry continue to debate the industry’s future.”
US futures were heading for a slightly higher open as markets shrugged off Nvidia’s 2% pre-market decline.
There were very few big movers on the FTSE 100 leaderboard with a distinct lack of corporate news to drive shares. Aviva was the top faller with losses of 1.8% while Diageo gained 2% to take the top spot.
There were losses for banks Lloyds and NatWest, while housebuilders ticked marginally higher.
JD Sports looked set to continue its rally and was knocking on the door of 100p following upbeat results yesterday.