MARKETS LIVE: European stocks recover after tech sell-off as FTSE 250 outperforms and US futures remain mixed
Oct 16, 2026 9:03 AM
· YahooFinance
Wall Street ended a volatile week on a sour note Friday as renewed selling in technology stocks dragged the Nasdaq lower, while a surge in oil prices added to investor concerns.
The Dow Jones Industrial Average fell 175 points, or 0.3%, to 52,002. The S&P 500 dropped 85 points, or 1.1%, to 7,659, while the tech-heavy Nasdaq Composite shed 573 points, or 2.1%, to 26,140.
The losses capped a difficult week for technology shares, with investors continuing to pull back from semiconductor stocks following a sell-off earlier in the week.
For the week, the Nasdaq fell 4.5%, ending a month-long winning streak and recording its worst weekly performance since late June. The S&P 500 lost 1.95%, while the Dow bucked the trend with a 0.7% gain as investors rotated away from technology stocks.
Oil added another layer of uncertainty. Brent crude touched $110 a barrel for the first time since May as Iran escalated attacks in the Strait of Hormuz, a key route for global energy shipments. West Texas Intermediate crude approached $100 a barrel.
The combination of geopolitical tensions and pressure on technology shares left investors weighing the risks to corporate earnings and the broader economic outlook.
Next week, attention will turn to another busy stretch of corporate earnings, with results expected from Netflix, Meta Platforms, Tesla, IBM, General Motors and 3M, among others. Their updates could offer further clues about business conditions, consumer demand and whether technology companies can sustain their recent growth.
The UK's main index finished the week strongly, up 0.4% on the day at 10,882 points to close out the week with a 3.1% gain.
"Investors sought shelter in U.K. defensive and personal goods sectors amid a global rout in AI-linked equities, while a pullback in government bond yields provided underlying support ahead of next week's crucial domestic inflation and labor market data releases," said Tickmill's Patrick Munnelly.
"While budget tax speculation weighed on domestic banks, declining gilt yields and steadying inflation expectations keep the market anchored near multi-week highs entering a key macro data week."
Anthropic (Unlisted (US):ANTHRO), the artificial intelligence company behind Claude, is being valued by some investors at about $1.5 trillion ahead of its planned November initial public offering, below earlier expectations of $2 trillion, Reuters reported.
The reassessment follows a slowdown in quarterly revenue growth, raising questions about whether the company can sustain the expansion needed to justify its valuation.
Anthropic disclosed that revenue rose 45% from the previous quarter to $16.8 billion in the third quarter, while the company remained profitable on an adjusted basis.
The growth rate was slower than in the second quarter, when revenue more than doubled to $11.6 billion from $4.7 billion in the first quarter.
The figures were presented at an investor day at Anthropic's San Francisco headquarters, attended by existing investors and prospective backers ahead of the anticipated share sale.
As expected, Wall Street opened on Friday largely muted.
The Dow and S&P opened slightly higher, while the Nasdaq fell as semiconductor stocks came under pressure.
The Dow Jones Industrial Average rose 130.60p, or 0.25%, to 52,308.28 at the open, while the S&P 500 gained 1.30p, or 0.02%, to 7,745.32.
The Nasdaq Composite fell 60p, or 0.22%, to 26,652.985 at the opening bell.
The S&P 500 slipped into negative territory in the first minutes of trading, falling almost 5p, or 0.06%, to 7,739.11. It recovered later.
Tesla’s gains provided some support, but the technology-sector weakness kept the overall market subdued.
Tesla (TSLA) shares rose 1.86% to $369.18, gaining $6.74 at about 9:45 am ET.
They were up about 4.4% in premarket trading after the company unveiled a redesigned Roadster featuring rocket-style thrusters developed with SpaceX, with investors watching for further details on production timing and commercial prospects.
CoreWeave (CRWV) shares fell about 6% to $65.18, losing $4.51.
Premarket trade expected this as concerns over the Nvidia-backed AI infrastructure company’s debt burden and financing costs weighed on sentiment, with investors watching for signs of further weakness across the data-centre sector.
Also, in early trade, Netflix (NFLX) shares were down almost 2% to $71.21, losing $1.40.
This came after the company announced the departure of its chief content officer and workforce cuts, as investors assessed the implications for user engagement and growth.
The FTSE 100 rose 0.36%, or 38.99 points, to 10,879.34, while the FTSE 250 outperformed, gaining 0.45%, or 109.50 points, to 24,534.27, with both indices trading in positive territory at about 2:55 pm BST.
The FTSE gained momentum in later sessions on Friday, recovering from an early dip as investors sought relatively defensive shares amid a global sell-off in AI-related stocks, although sentiment remained fragile.
US futures continue to be a mixed bag, about 30 minutes before Wall Street opens.
Pressure is on AI and tech stocks.
Tesla shares rose 3% in premarket trading after the electric vehicle maker unveiled a redesigned Roadster featuring rocket-style thrusters developed in collaboration with SpaceX.
Nvidia-backed CoreWeave fell over 5%, giving back some ground after Thursday’s rebound, as concerns persisted over the data centre operator’s debt burden.
The FTSE 100, though back in black at about 1:54 pm BST, has been largely flat today.
It is up 0.04%, or 5p, at 10,844.95.
WPP led FTSE 100 risers on Friday, climbing over 4%, or 16.30p, to 416.70p, followed by Babcock International, up over 3% to 963.60p, and Auto Trader Group, which gained over 2% to 546.60p.
BAE Systems rose over 2% to 1,979p, while Weir Group added over 2% to 2,672p.
Severn Trent was the biggest faller, dropping 2% to 3,144p, followed by Antofagasta, down 2% to 3,354p, and AstraZeneca, which lost 2% to 12,438p.
NatWest and Lloyds also fell, alongside utilities and pharmaceutical stocks.
The FTSE 100’s biggest risers and fallers point to a divergence in sector performance, with industrial and defence-related shares gaining while utilities, banks and healthcare stocks came under pressure.
Man Group (Man Group PLC (LSE:EMG)): Shares +4% to 348.8p after strong net inflows; Peel Hunt reiterated ‘buy’, 350p target, citing momentum in performance fees and robust results
US stock index futures were mixed on Friday as renewed concerns about the sustainability of the AI trade pressured technology shares.
At 12:40pm BST, Nasdaq 100 futures were down 42.75p at 30,101, indicating continued pressure on technology shares, while S&P 500 futures rose 0.11% to 7,799.75.
Micro E-mini Dow Jones Industrial Average futures for December gained 37p, or 0.07%, to 52,467, pointing to modest support for blue-chip stocks.
Brent crude futures for December delivery rose 0.58% to $106.53 a barrel, signalling continued upward pressure on oil prices, more so because of the continued Houthi attacks in Saudi Arabia.
The gain could reinforce inflation concerns by raising energy and transport costs, potentially complicating the outlook for central banks seeking to bring inflation under control.
The dollar weakened further on Friday, extending its retreat earlier in the week, as falling US Treasury yields and concerns over the AI trade weighed on the currency.
Sterling strengthened against both the US dollar and the euro, with the dollar falling 0.48% to £0.7496 and the euro declining 0.33% to $0.8883.
US Treasury yields fell sharply while yields in the UK, Australia and Canada edged higher, pointing to a divergence in government bond markets, with the 10-year US yield down 9 basis points to 5.10%, against smaller increases elsewhere.
The move suggests investors were more inclined to buy US government debt than bonds in the other three markets, among other reasons.
At 12:55 pm BST, the FTSE 100 slipped back into negative territory, falling 0.08%, or 8.94p to 10,831.41, after swinging between gains and losses earlier in the session.
The choppy performance reflects fragile sentiment following Thursday’s technology-led sell-off, as investors weigh concerns about artificial intelligence valuations and the outlook for interest rates.
The FTSE 250 is holding up better, rising 0.44% to 24,531.88.
European stock markets rose in early trading on Friday as sentiment began to recover from the previous session’s sharp tech sell-off, while the dollar weakened and was on track for a weekly loss.
The FTSE 100 has rebounded to 10,853.85, up 13.50p, or 0.12%, while the FTSE 250 has gained 0.62% to 24,575.27 at 11:52 am BST.
The recovery in blue-chip shares follows an earlier pullback, but the FTSE 100’s modest gain suggests sentiment remains fragile, with mid-cap shares continuing to outperform.
US futures mixed as Nasdaq slips and S&P 500 rises.
At 11:50 am BST, Nasdaq 100 futures was down 0.08% at 30,119.25, while S&P 500 futures rose 0.19% to 7,805.50.
Micro E-mini Dow Jones Industrial Average futures for December 2026 are up 0.42% at 52,652.00, pointing to a firmer outlook for blue-chip shares than the Nasdaq futures suggest.
The divergence comes as investors remain cautious about technology valuations and the debt needed to finance the artificial intelligence boom, even as broader markets recover from Thursday’s volatility.
Iofina PLC (AIM:IOF, OTC:IOFNF), the iodine producer, has commissioned its largest iodine production plant to date in the Permian Basin, marking an expansion milestone as lower brine supplies and project delays weighed on third-quarter output.
Pathos Communications Plc (LSE:NEWS), the public relations technology company, has been named Best Newcomer at the AIM Awards 2026.
HeLIX Exploration PLC (AIM:HEX, OTCQB:HHEXF) announced it has secured regulatory approval to restart helium production at its Rudyard facility in Montana, clearing the hurdle that forced operations to pause in September.
The FTSE 100 was broadly unchanged at 10,838 as gains for WPP and industrial companies offset continued weakness among UK banks.
Advertising group WPP led the blue-chip risers with a 4.2% advance, extending the previous session’s 3% gain.
Babcock International climbed 3.6%, Melrose Industries added 2.6% and engineering group Weir rose 2%.
Auto Trader gained 1.8%, Pearson advanced 1.8% and defence contractor BAE Systems added 1.8%.
The domestically focused FTSE 250 outperformed with a 0.5% rise to 24,538, while the AIM All-Share gained 0.8% to 771.
The FTSE 350 and FTSE All-Share both edged 0.03% higher as broader market strength outweighed the FTSE 100’s subdued performance.
Banking shares remained under pressure amid expectations that Chancellor John Healey could increase the surcharge on bank profits in the 28 October Budget.
Fresh European data showed eurozone annual inflation was confirmed at 3.8% in September, up from 3.2% in August and well above the European Central Bank’s 2% target.
The eurozone also recorded a €16.1 billion trade deficit in August, compared with a €1.7 billion deficit during the same month last year, as elevated energy costs increased the region’s import bill.
The figures reinforced expectations that the European Central Bank will maintain a cautious approach as policymakers balance persistent inflation against weakening industrial and trade conditions.
The FTSE 100 slipped 5 points to 10,836 as Lloyds Banking Group and NatWest led the fallers amid expectations of higher taxes on the banking sector.
Lloyds dropped 2.3%, and NatWest fell 2.1% as Chancellor John Healey reportedly considered reversing previous reductions to the bank surcharge in his 28 October Budget.
