The FTSE 100 surged to fresh record highs on Friday as the index rode the coattails of an AI-inspired US tech rally overnight, which also saw the S&P 500 scale record levels.

UK investors will be delighted to see the FTSE 100 trading just a whisker away from 9,500 in a broad-based rally.

“The FTSE 100 reached new record highs in early trading on Friday as investors shrugged off concerns about the US government shutdown,” said AJ Bell investment director Russ Mould.

“News of OpenAI’s valuation reaching $500 billion, making it the world’s most valuable private company, helped fire enthusiasm in the tech sector and push US indices to new records yesterday.”

The positive sentiment from the US seeped into the European session, and London’s leading index gained 0.7% to 9,490. The FTSE 100 is now 14.9% higher year-to-date and is on track for the best annual return since 2009, when the index rose 22%.

A pickup in IPO activity on Friday also helped lift the mood. The Beauty Tech Group made a strong start in its life as a London-listed company after listing at 271p in a £300m London Stock Exchange IPO, and the Princes Group announced its intention to list in London.

“The UK stock market has been starved of new blood in recent years, with IPOs being thin on the ground,” said Dan Coatsworth, head of markets at AJ Bell.

“It’s therefore encouraging to see activity levels start to pick up. Investors are keen for new stock ideas and two new listings have the potential to grab the market’s attention.”

The FTSE 100’s gains were broad on Friday, with around 80 of the FTSE 100 constituents trading higher at the time of writing.

Bunzl benefited from a broker upgrade, and shares soared 4% to the top of the FTSE 100 leaderboard. Schroders also enjoyed a positive broker rating and gained 3%.

There will be no Non-Farm Payrolls report today due to the US government shutdown, so investors will have to wait a little longer for the next economic data point and hints of further rate cuts.

Princes Group, a major UK and European food and beverage company, has announced plans to float on the London Stock Exchange’s Main Market.

The group owns and distributes well-known brands such as Princes, Napolina, Branston, Batchelors, Flora and Crisp ‘N Dry.

Princes is a group of significant scale. The firm generated £2.1 billion in revenue for the year ending 31 December 2024 and is on track to match or beat this in 2025.

It holds leading positions in both branded and own-label products across five business units: Foods, Fish, Italian, Oils and Drinks. The group operates 23 production facilities across the UK, continental Europe and Mauritius, employing approximately 7,800 staff.

Princes should be well received by London’s equity markets. Its portfolio of brands will help build affinity with retail investors, and the reliability of its cash flows could make it an interesting dividend play in the future.

“Our position as a category champion is grounded in well-invested manufacturing, deep and long-standing relationships throughout our supply chain, and a highly skilled and motivated workforce,” said Simon Harrison, CEO of Princes Group.

“These strengths have established Princes as a trusted partner to our customers, driving sustained, profitable growth and a first choice for consumers.

“Whilst we are renowned for our iconic Princes tuna, through a combination of organic growth and focused M&A, we have built an international £2 billion food and drink portfolio, leading across five complementary categories, food, fish, Italian, oils and drinks, with operations spanning seven countries.”

The announcement of Princes Group’s intention to list comes alongside the successful listing of The Beauty Tech Group, which got off to a strong start as a London-listed firm on Friday.

Everyone connected to London’s equity markets will hope today’s activity is a sign of the long-awaited pick-up in London’s IPO activity.

Wetherspoon shares slipped on Friday as investors fretted about costs despite the pub group reporting very respectable profits and margin expansion during the 52 weeks to 27th July.

JD Wetherspoon has reported a 4.5% increase in revenue to £2.13bn for the year ended July 2025, with pre-tax profit climbing 10.1% to £81.4m before exceptional items.

Like-for-like sales grew 5.1%. Bar sales rose 5.1%, food by 5%, and fruit machines surged 11%. However, hotel room sales fell 11.9% after the chain ditched third-party online booking agents charging high commission rates.

Operating profit increased marginally to £146.4m from £139.5m, with the operating margin edging up to 6.88% from 6.85% the previous year.

The pub operator, which now runs 85 fewer sites than before the pandemic, said sales per pub were 29% higher than in 2019—outpacing consumer price inflation.

Yet profits remain below pre-pandemic levels as energy costs have jumped 57.8% and wages 34.5% since then. Costs were the driving force in the group’s share price decline on Friday on concerns about lower profitability in the next year.

“Wetherspoons’ mention of rising labour costs and higher energy levies cast a pall over the rise in profits and improved sales figures. As a result, more of the bounce in shares from earlier in the year continues to drain away,” said Chris Beauchamp, Chief Market Analyst at IG.

“The market was clearly in the mood for something more, and today’s update provides little reason for a change in the current share price direction.”

Wetherspoon warned that new electricity levies starting this month will add £7m annually to its bills. Non-commodity charges—effectively taxes—now account for roughly 62% of total electricity costs.

“As previously indicated, increases in national insurance and labour rates will result in cost increases of approximately £60 million per annum, and non-commodity energy costs will add £7 million,” said Tim Martin, the Chairman of J D Wetherspoon.

“The recently introduced ‘Extended Producer Responsibility’ tax, a levy on packaging, referred to in the table on page 9, will cost £2.4 million in the current year, an increase of £1.6 million. Cost increases such as these will undoubtedly add to underlying inflation in the UK economy, although Wetherspoon, as always, will endeavour to keep price increases to a minimum.”

Beauty Tech Group has wrapped up its IPO funding round, securing a £300m valuation as it embarks on the next chapter of growth in the at-home beauty devices market.

Beauty Tech Group shares were priced at 271p per share for its IPO, with a total offer of £106.5 million comprising freshly issued shares and the sale of existing shares by current shareholders.

The company has raised £29 million through the issue of newly issued shares to ensure it is debt-free and has ample working capital to pursue its growth objectives. Existing shareholders will receive over £77m.

The company was well received by the market with shares trading at 282p at the time of writing.

Beauty Tech Group is targeting rapid growth in at-home beauty device market, which is estimated to be worth between £9 billion to £12 billion globally in 2024. The UK market is thought to be around £1.6 billion – £1.8 billion.

At-home beauty devices utilise technologies such as Radio Frequency, Laser Therapy, and LED Lights to enable users to undergo beauty treatments from the comfort of their own homes and save money on sometimes expensive treatments.

The group generated £101 million in revenue in 2024 and reported a profit of £1.7 million. Profits, needless to say, will need to accelerate quickly to justify the £300m price tag.

“I am incredibly proud of everything The Beauty Tech Group has achieved since we launched CurrentBody in 2009,” said Laurence Newman, Founder and CEO of The Beauty Tech Group.

“From establishing ourselves as a global leader in the fast growing at-home beauty technology market to successfully completing this milestone listing on the London Stock Exchange, the Group continues to go from strength to strength.

“As we enter the next stage of our growth journey, this IPO provides the perfect platform to increase awareness of our three distinct, premium brands and take the Group to the next level, while delivering sustained and profitable growth. The continued momentum within the business and strong support from investors during our roadshow, gives us the confidence and financial firepower to fully capitalise on the significant opportunities that lie before us.

“Most importantly, I would like to thank everyone at The Beauty Tech Group. The business would not be where it is today without their dedication and hard work and I am excited to embark on this next chapter together.”

The FTSE 100 rebounded from early losses on Thursday as strong results from Tesco and a broker upgrade for 3i helped offset weakness in Experian.

London’s leading index was 7 points at the time of writing and was tiptoeing towards another all-time record closing high.

Thursday’s trading was dominated by stock-specific stories as investors waited for the next economic data point to move the dial for stocks. This will likely come tomorrow in the form of the Non-Farm Payrolls, providing the latest insight into slowing US job creation.

Weakness in utility and tobacco stocks led to a softer start for the FTSE 100 index on Thursday, as Experian sank amid concerns about competition.

“Experian’s shares tumbled after the emergence of a new competitive threat.” said Russ Mould, investment director at AJ Bell.

“Analytics software group FICO launched a new service that it believes could make US mortgage brokers and lenders less reliant on credit agencies such as Experian to calculate consumer credit risk.”

Investors baulked at the news, and Experian shares were down 5% at the time of writing.

SSE shares fell 2% after the renewable energy group said unfavourable weather conditions weighed on output.

By lunchtime, the FTSE 100 index had turned positive, driven by gains from 3i and Tesco. UBS analysts bumped their price target on UBS up to 4,700p, helping shares rise by 3.7%.

Tesco was the standout corporate update story on Thursday as the supermarket released interim results revealing a 5.1% increase in sales. Strong sales gave Tesco the confidence to upgrade its profit guidance for the year, and investors cheered the news, with Tesco shares higher by 3%.

“Tesco’s interim results demonstrate impressive market leadership in what remains an exceptionally competitive UK grocery sector,” said Adam Vettese, market analyst for eToro.

“Sales showed notable momentum driven in part by an unusually hot summer which spurred volume growth across fresh foods and summer ranges, helping Tesco capture the fastest market share gains among major grocers. The emphasis on value through price matching and promotional Clubcard discounts proved effective with customers which in turn has supported continued share buybacks and a healthy dividend uplift.”