Britain's FTSE 100 slips as Nvidia optimism fails to lift market

London’s FTSE 100 index tumbled on Thursday as strong performance in technology stocks, fueled by Nvidia’s impressive earnings report, couldn’t counteract the decline in other sectors. The index closed 0.5% lower at 10,820.66 points by 10 a.m. GMT, while the FTSE 250 midcap fell 0.04%. Nvidia’s optimism was evident in the tech sector, where shares rose 1%.

Conversely, beverages, chemicals, and real estate investment trusts (REITs) were the top decliners, slipping between 1% and 1.6%. Analyst Dan Coatsworth from AJ Bell noted that while Nvidia’s positive outlook boosted UK tech-related stocks, it wasn’t sufficient to revive the FTSE 100 from its slump. Separately, Qatar’s Prime Minister made a visit to Tehran aimed at restarting negotiations following tensions between the U.S. and Iran over the potential for economic sanctions targeting Tehran's trade partners.

Oil prices took a further tumble, sliding over $1, as markets anticipated a possible easing of tensions in the Strait of Hormuz, which could alleviate supply disruptions stemming from the ongoing Middle Eastern conflict. Meanwhile, investors did not fully factor in a quarter-point Bank of England interest rate increase until February 2027, pushing bond yields lower after a slight rebound in the prior trading day.

Furthermore, attention was focused on Fed Chair Jerome Powell’s upcoming address at the Jackson Hole economic symposium on Friday, following unexpectedly strong inflation figures that raised expectations of a possible rate increase in the upcoming month. Among individual companies, Halfords surged 12.6% to claim the top spot in the FTSE Midcap index after the retailer reported annual profits exceeding forecasts.

Computacenter also climbed 4.7% to lead the FTSE 100 index, after investment firm Peel Hunt upgraded its stock rating to "buy" from "add" and raised its price target to 6,000 pence from 4,400 pence.