The FTSE 100 jumped on Friday as investors reacted positively to more strong earnings and a rip roaring rally in US tech shares overnight.
A surging session for the world’s top technology and AI related companies would have helped lift the mood on Friday.
Just as the NASDAQ entered correction territory, investors swarmed back into some of the world’s most popular AI related companies sending the index 2.7% higher on the day.
Names such as CoreWeave and Nebius rocketed more than 30% higher yesterday which should ease the nerves of anyone concerned about the AI trade falling apart. The market isn’t out of the woods yet, but the mood is much better than it was 48 hours ago.
“The FTSE 100 tested new record highs on Friday morning as investors continue to climb the wall of worry and sentiment improves,” says AJ Bell investment director Russ Mould.
“The rebound in tech powered by Microsoft’s extremely well-received numbers has helped lift the broader market mood, helping investors to put concerns about the Iran conflict and its continuing impact on ice for now.
“Miners were higher in London, with the UK market also boosted by some positive corporate updates
It’s been a sterling week for UK earnings with several stalwarts smashing expectations, driving the index higher.
NatWest added to the long list of upbeat results on Friday with earnings that followed the tone of other FTSE 100 banks earlier in the week.
IAG was another to report, but didn’t provide the ascent in share investors were hoping for.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown, said: “British Airways owner IAG is flying through the year relatively well given the difficult market conditions. The headline figures may look disappointing at first glance, with broadly flat revenue and second-quarter profits declining at a double-digit rate due to soaring fuel costs. But context is key, and profits held up better than many peers. They were even better than markets expected, thanks to a tight grip on everyday costs and a lower-than-forecast fuel bill.”