The FTSE 100 fell 2.2% to 10,540.78 points by 1143 GMT on Friday, putting it on course for its steepest daily decline since mid-March and a weekly loss. Concern about possible US AI regulation and reduced data-centre spending helped drive a selloff across global markets.
The midcap FTSE 250 slipped 1.2%, while Europe’s STOXX 600 fell 1%. US political changes and the prospect of tighter rules for artificial intelligence have unsettled investors, alongside concerns that construction of data centres could slow and major technology companies could rein in spending. The S&P 500 and Nasdaq recorded their sharpest one-day falls since April 2025 on Thursday.
Most London sectors declined. Precious metal miners gained 1.2%, but pharmaceutical and personal care, drug and grocery stocks each fell about 3.5%, giving back gains from the previous two sessions. Energy stocks lost 2.5% as oil prices slipped.
“When $2.5 trillion of value is lost from one of the major US stock market indices in a day, it's understandable that investors are feeling on edge,” said Dan Coatsworth, head of markets at AJ Bell.
In company news, Lloyds said British house prices recorded their fastest annual fall in a year in October, as higher mortgage costs weighed on demand. Man Group was the FTSE 250’s weakest stock, dropping 6.5% after Kuwait’s public pension fund won a lawsuit against the asset manager on Thursday. TBC Bank led the midcap index, rising 6.1% after its third-quarter net profit increased.
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