The FTSE 100 was lower on Wednesday as UK stocks tracked US markets lower, with major indices taking a break from a rip-roaring rally.

London’s leading index was down 0.2% at the time of writing.

“Wall Street hit pause on its rally yesterday, with the S&P 500 slipping 0.6% and the Nasdaq down 0.9%. The pullback came after three straight record closes, as Fed Chair Powell flagged ‘fairly highly valued’ equity prices and investors reassessed the sustainability of recent AI-fuelled gains,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Micron bucked the trend with strong earnings and a bullish AI outlook, while Lithium Americas shares soared on news that it may be the US government’s next target for an equity stake.”

Defence names were the best performers in London on Wednesday after Donald Trump said European countries should shoot down Russian jets that violate their airspace. The US president also changed his tone on Ukraine, suggesting that Ukraine should retake land currently occupied by Russia.

This all hints at escalation or a prolonged conflict that will require higher defence spending. Babcock and BAE Systems were both higher by more than 1%.

JD Sports was also among the gainers as the firm announced a fresh £100m share buyback despite like-for-like growth remaining in retreat in all geographies in which the sports retailer operates.

“JD Sports delivered robust headline sales growth of 20% in the first half, supported by the major acquisitions of Hibbett and Courir, which expanded its reach in North America and Europe and drove further market share gains,” said Adam Vettese, market analyst for eToro.

“However, overall profit before tax fell by 13.5%, reflecting margin pressure, increased promotional activity, and softer trading in key regions, particularly the US and UK. Operating profit and adjusted earnings also declined as the group navigated a highly competitive retail environment and heightened cost inflation. 

“Despite these challenges, JD’s disciplined execution and strong cash generation enabled a new £100 million share buyback, showcasing confidence in its long-term prospects. Continued investment in omnichannel infrastructure and brand partnerships lays the groundwork for future growth, but the near-term outlook remains cautious given macro uncertainties and ongoing margin risks.”

Burberry was the FTSE 100’s top faller with a 2.3% decline.

Tekcapital has reported another period of record net assets as its portfolio company readies for a NASDAQ IPO that has the potential to create further value for shareholders.

The company achieved record net assets of US$77.4 million as of June 30, 2024, compared to US$70.1 million as of December 2024. This represents approximately 10% growth, which was driven by portfolio appreciation.

The net asset value per share remained stable at US$0.33, unchanged from 31 December 2024.

The portfolio valuation increased to US$68.8 million from US$61.5 million as of December 31, 2024. Meanwhile, revenue totalled US$6.1 million, generated from services and portfolio returns, compared to US$21.1 million recorded in the first half of 2024.

These were solid results from Tekcapital. However, investors will be more interested in the upcoming Guident IPO and just how much its valuation on flotation will add to the Tekcapital portfolio.

Looking ahead, the company is now operating at a significantly lower cost base and will soon no longer be required to fund the growth of its portfolio companies, with all five of its companies publicly traded.

“The reduction in operating expenses by 50% underscores our commitment to operating efficiency and ensures that a greater proportion of returns accrue to shareholders in the future. Our strategy continues to validate itself: commercialising GenAI-centric technologies to enhance business efficiency and improve quality of life,” said Dr. Clifford M. Gross, Chairman of Tekcapital.

“This approach has not only delivered profitable growth for Tekcapital but has also positioned most of our portfolio companies to create lasting societal impact, from reducing sodium intake in more than 470 million servings with Microsalt®, accelerating the commercialisation of hundreds of new university discoveries with GenIP, enhancing pedestrian and workplace safety for thousands of individuals with Lucyd smart eyewear, and improving autonomous vehicle safety with Guident.”

Gross continued to explain that Guident’s upcoming proposed NASDAQ IPO will play a major part in the firm’s future ability to return cash to shareholders in the form of special dividends.

“Guident has made notable commercial strides, from advancing its remote monitoring platform for autonomous vehicles to securing strategic contracts and expanding its leadership team,” Gross said.

“With its S-1 now publicly filed, Guident is well on its way to a potential NASDAQ listing. We believe this IPO has the potential to crystallise significant balance sheet value and facilitate future issuances of special dividends, whilst opening the door for a broader investor base to participate in its scale-up journey.”

JD Sports released interim results on Wednesday, showing signs of stabilisation in North America despite a softer picture in Europe.

JD Sports reported sales of £5.94 billion for the 26 weeks to August 2, up 18% on a reported basis, driven by the acquisitions of Hibbett and Courir, with organic sales rising a more modest 2.7%.

However, like-for-like sales declined 2.5% with softness evident in all geographical markets.

That said, North America was a reason to be positive, with improvements in both apparel and online channels, as JD gained market share in the region. The company significantly boosted brand awareness stateside and successfully integrated Hibbett operations.

European performance remained steady despite tough consumer conditions. However, the UK faced headwinds in the second quarter due to difficult comparatives from last year’s Euro 2024 football tournament, which had provided a sales boost.

JD Sports shares were almost flat at the time of writing on Wednesday.

“Overall, sales don’t tell the true story here, with total revenue rising by a seemingly impressive 20% in the period. But this growth was fuelled entirely by the acquisitions of Hibbett in the US and Courir in France last year, which are helping to flatter current performance,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

Chiekrie continued to explain that JD Sports was always going to have a tough time impressing the market, given the strong sales the company had enjoyed during the Euros the previous year, and that the US market was showing some signs of positivity.

“Trading across Europe and the UK remains weak, especially in the latter,” Chiekrie said. “Year-on-year numbers have come up against some tough comparables, with last year’s sales getting a foot up from the men’s 2024 Euros. The outlook for the UK remains underwhelming, with recent changes to employer taxes and minimum wages bringing a handful of extra costs and challenges.

“Across the pond, recent acquisitions cemented the US as the group’s largest region by sales. A shift of focus from expansion to raising brand awareness and squeezing the most out of its existing store footprint is a welcome one, and while like-for-like sales are still in negative territory, there are early signs that sales trends are improving.”

Despite concerns about the economic outlook, JD Sports is moving forward with a fresh buyback, which will help soften the market impact of slowing sales.

“Despite these challenges, JD’s disciplined execution and strong cash generation enabled a new £100 million share buyback, showcasing confidence in its long-term prospects,” said Adam Vettese, market analyst for eToro.

“Continued investment in omnichannel infrastructure and brand partnerships lays the groundwork for future growth, but the near-term outlook remains cautious given macro uncertainties and ongoing margin risks.”

GenIP has struck another strategic partnership, this time with 360 Social Impact Studios, a Seattle-based innovation consulting firm and venture studio.

This partnership will see GenIP’s Invention Evaluator reports integrated into 360’s venture-building process. The collaboration transforms GenIP from an external service provider into a core platform component.

“Integration of GenIP’s services addresses two critical gaps we see in early-stage innovation: rigorous validation and strategic talent acquisition,” said Chandler Lewis, Managing Director and Founder of 360 Social Impact Studios.

“Their Invention Evaluator ensures we are not just advancing interesting ideas, but viable ones with clear paths to market. Further, their talent platform helps ventures build teams that bring both expertise and lived experience. For our global network of clients and partners, this means better investment decisions and stronger ventures. For the communities we serve, it means innovations that actually work for them.”

Investors will be interested in learning that the partnership secures predictable, recurring revenue while providing access to 360’s pipeline of over 50 active engagements and more than 100 corporate clients—a significant expansion beyond GenIP’s traditional academic market base.

Every project within 360’s innovation platform will now undergo rigorous assessment for market potential and commercial readiness using GenIP’s evaluation technology. The partnership also opens cross-selling opportunities for GenIP’s recruitment and leadership hiring services as 360’s portfolio companies scale their operations.

“This corporate strategic partnership represents a significant milestone for GenIP,” said Melissa Cruz, CEO of GenIP.

“By embedding our Invention Evaluator into 360’s global framework, we transition from being a project-based service to a foundational part of their innovation infrastructure. This provides GenIP with predictable revenue and direct access to a broad corporate pipeline, reinforcing our strategy to grow our presence in the corporate sector.”

The FTSE 100 gave up early gains on Tuesday as losses in heavyweights such as BAE Systems and AstraZeneca offset a strong rally for Kingfisher.

London’s leading index was dead flat at the time of writing, having been around 30 points higher in early trade.

The main story in town on Tuesday was another boost to investor sentiment from fresh record highs in the US overnight. Unfortunately, this sentiment didn’t spill over into the UK’s top stocks.

US tech shares were front and centre again after Nvidia announced it would invest $100 billion in ChatGPT owner OpenAI as part of a partnership to build AI factories using Nvidia chips.

“The FTSE 100 ticked higher on Tuesday as US shares were higher despite the hoo-ha around visa fees,” said AJ Bell investment director Russ Mould.

“Helping to draw focus from this issue was Nvidia’s $100 billion tie-up with OpenAI which helped US indices and some Asian markets to new record levels.

“There was a split of opinion on whether this reflected the fact there is no alternative to Nvidia for the chips required to power AI or whether it was questionable that Nvidia was effectively funding a customer to buy its products.”

Regardless of the actual reason behind the deal, the market appreciated Nvidia’s investment, and shares rose by 4%.

Kingfisher was the FTSE 100’s top riser after the DIY specialist announced it had increased its guidance for the year following an uptick in sales during their first half.

As well as being good news for Kingfisher, their results show the UK consumer still has some fight left in them, which bodes well for the wider economy.

“Kingfisher’s first half numbers showcase commendable operational execution in a tough retail environment. Underlying like-for-like sales climbed just shy of 2% supported by solid progress at both B&Q and Screwfix, and double-digit growth in trade and e-commerce channels,” said Adam Vettese, market analyst for eToro.

“Margin improvements and tight cost control lifted adjusted pre-tax profit by over 10%, and free cash flow rose 13.5%. Management’s decision to upgrade full-year profit guidance and accelerate the share buyback programme underlines confidence in their financial position and strategic momentum.”

Kingfisher shares were 15% higher at the time of writing.

Profit taking hit names such as Babcock and BAE Systems, which weighed on the index.

Kingfisher issued a surprisingly strong half-year report on Tuesday, sparking a rally in the stock as investors cheered positive revenue growth across the UK and Europe.

Investors would have been forgiven for expecting a soggy update from Kigfisher, given the disappointing UK economic backdrop.

However, Kingfisher wowed the market as it increased its profit guidance to the upper end of the previously guided range of approximately £480m to £540m.

“There was plenty to like about the numbers, which makes a nice change for shareholders,” said Chris Beauchamp, Chief Market Analyst at IG.

“The investment case for Kingfisher has been given a solid boost, thanks to improvements in margins, cash flow and an upgrade to forecasts. Combined with the recent improvement in Wickes’ trading, it seems things are finally looking up for this area of UK retail.”

The DIY retailer posted underlying like-for-like sales growth of 1.9% in the third quarter, up from 1.4% in Q2. Both B&Q and Screwfix delivered robust results, with like-for-like sales rising 4.4% and 3.0% respectively.

The company gained market share across the UK, France and Spain whilst maintaining its position in Poland. Trade sales surged 11.9% and e-commerce grew 11.1%, reflecting continued strategic progress.

“We delivered a strong first half with high quality underlying like-for-like sales growth of 1.9%, driven by increased volumes and transactions,” said Thierry Garnier, Chief Executive Officer.

“Our teams continue to execute at a high level, delivering double-digit growth in our strategic initiatives, trade and e-commerce, which supported our market share gains. We were encouraged by underlying quarter-on-quarter growth in our core categories, and a third consecutive quarter of growth in big ticket sales.”

GB Group shares rose on Tuesday after the identity technology firm announced its intention to move from AIM to the main market of the London Stock Exchange.

GB Group is the latest company to cancel its AIM listing in favour of the main market as the AIM market continues to shrink through cancellations and a lack of IPOs.

Investors will hope that the shift to the main market will reinvigorate interest in the group’s shares, which have declined by 26% over the last year and are now worth roughly 75% of their peak value in 2021. 

In an accompanying trading update, the company stated that its performance year-to-date has been in line with board expectations. Combined with its current sales pipeline, GB Group said it will meet its full-year revenue outlook, which aligns with market expectations.

Performance was reasonable in FY25, with revenue growing 3% and adjusted operating increasing 9%.

GB Group shares were 4% higher at the time of writing.