A dramatic tech sell-off has seen $1trillion (£735billion) wiped out from US stocks in recent trading sessions as investors become increasingly concerned about artificial intelligence (AI).
Major tech firms and software firms, which were previously boosted in the stock market thanks to AI enthusiasm, accelerated yesterday’s drop and pushed indexes into the red.
In early trading contracts on the S&P 500, the tech-heavy Nasdaq 100, and the Dow Jones Industrial Average all edged down about 0.2 per cent
Anxiety remains at fever pitch levels following yesterday’s heavy stock sell-up, which retreated substantially with the broader market as fears over AI expanded into other sectors.
Stock market in freefall after AI sell-off
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GETTY / X
Among the impacted sectors from Thursday’s volatility, included hreal estate, transportation, and software.
Tech made up the majority of yesterday’s losses as all seven of the “Magnificent Seven” megacaps finished lower.
This group of companies includes Apple, Microsoft, Amazon, Google-owner Alphabet, Meta Platforms, Tesla, and Nvidia.
Out of all yesterday’s losses, Apple had its steepest one-day drop since April 2025, falling five per cent.
The stock market has been volatile since Trump returned to office | Reuters
The ‘Magnificent 7 stocks’ —Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla— are the primary drivers of the Nasdaq’s value | GETTY
Despite closing on negative territory, the Ftse 100 began Friday the 13th on the front foot, waving off AI concerns that sent Wall Street into a panic.
London’s primary stock market index gained 36 points to 10,438.01 in opening trades, recovering some of yesterday’s losses.
Leading the Ftse 100 leaderboard is is RELX, up 2.9 per cent and building on yesterday’s gains after full-year results met expectations and management unveiled a larger-than-forecast £2.25billion share buyback.
After its latest financial results, NatWest Group is up 1.9 per cent after it posted a strong jump in 2025 earnings and promised more returns to shareholders.
The FTSE 100 ended Monday at a record high of 8,998.06, lifted by optimism over the new US-UK trade deal | PA
Derren Nathan, the head of equity research at Hargreaves Lansdown, said: “The Ftse100 is set to gain back some ground today as it looks to test the 10,500 level again.
“London’s leading index briefly touched a fresh intra-day high yesterday, boosted by Nuveen’s bid for UK fund manager Schroders, but commodity price gyrations and weak UK gross domestic product (GDP) data saw the index end the day down.
“With nerves running high, certain defensive sectors seem to be performing relatively well, with UK-listed utility and healthcare stocks having a good run of it this week. It’s been a bumpier ride for UK bank stocks, but a profit beat by NatWest, coupled with an upgrade to its longer-term capital efficiency targets, could help lift sentiment today.
“US stock futures are down again this morning. All of the major indices fell yesterday, led by the Nasdaq, which lost two per cent, while 10-year treasury yields dropped to 4.11 per cent, the lowest level seen this year, also reflecting the risk-off sentiment.”
