- US stocks fall as AI spending fears and tariffs pressure technology shares.
- Oil prices retreat as trade tensions and Middle East risks remain in focus.
- UK markets rise on stronger economic data and positive company updates.
US stocks finished Friday on a mixed note as investors weighed the impact of new global tariffs alongside persistent concerns over artificial intelligence spending, higher bond yields and volatile energy markets.
The Dow Jones Industrial Average gained around 0.5%, while the S&P 500 edged slightly into positive territory. Technology shares remained under pressure, with the Nasdaq Composite falling 0.6% and the Nasdaq 100 losing 1.15%, extending Thursday’s technology-led sell-off.
Despite Friday’s steadier performance, all three major US indices ended the week lower, with the Nasdaq recording the largest decline after losing around 2% over the past five trading sessions.
Sentiment towards large technology companies remained fragile after the Magnificent Seven collectively shed almost $800 billion in market value on Thursday as investors reacted to rising capital expenditure linked to artificial intelligence. Intel shares fell almost 8% despite reporting second-quarter results that exceeded Wall Street expectations, adding to pressure across the semiconductor sector.
Trade policy also remained firmly in focus after President Donald Trump’s latest Section 301 tariffs came into force overnight. The measures apply rates of between 10% and 12.5% on imports from many of the United States’ largest trading partners, although some energy products were excluded as policymakers sought to avoid adding further pressure to already elevated oil prices.
Oil prices eased during Friday’s session, with Brent crude falling 4% to trade below $96 a barrel. Even so, the international benchmark remained on course for a weekly gain after briefly climbing above $100 earlier in the week amid heightened tensions in the Middle East.
Economic data offered a more positive signal after S&P Global’s flash Purchasing Managers’ Index showed US business activity expanded at its fastest pace in eight months during July, supported by activity linked to the World Cup.
Corporate earnings also remained in focus, with Verizon Communications, American Express and NextEra Energy all reporting earnings above expectations, although each company fell short of revenue forecasts.
SpaceX shares dropped 2.7% to a record closing low of $115.07, leaving the stock down 7.2% over the week. The decline came ahead of a major Starship test mission and followed a Bloomberg report that the company has begun turning away future Falcon 9 cargo customers beyond 2028 while shifting its long-term focus towards Starship.
In London, equities ended the week on a stronger footing after encouraging economic data and reports suggesting fresh peace talks between the US and Iran could be under consideration lifted market sentiment.
The FTSE 100 rose 0.9% and the FTSE 250 gained 0.7%, with buying interest strengthening into the close as Brent crude retreated to $95.49 a barrel following reports that Pakistan was considering facilitating new negotiations between the US and Iran with Chinese backing.
Earlier in the day, UK data pointed to improving economic conditions. S&P Global’s flash composite PMI rose to 52.1 in July from 49.3 in June, returning to expansion territory, while the services PMI increased to 51.8. Separate figures from the Office for National Statistics showed retail sales volumes climbed 4.2% year on year in June, and GfK’s consumer confidence index improved to minus 17 from minus 23.
Among individual shares, Relx climbed 4.8% after Bank of America raised its price target, JD Sports Fashion gained 3.7% following an upgrade to ‘buy’ by Exane BNP Paribas, while HSBC added 1.7% after agreeing to sell its Singapore life and health insurance business to Allianz for around $2.1 billion.
On the FTSE 250, discoverIE Group advanced 6.3% after reporting double-digit constant currency sales growth and a 31% increase in organic orders, while Renishaw gained 5.2% after forecasting full-year profit above previous expectations.
Wise was among the session’s weakest performers, falling 4.9% after its application for a US national trust bank charter was rejected by the Office of the Comptroller of the Currency.
