Nikkei 225 Index Down 3.28% As Markets Shaken by Tech Sector Selloff

Markets around the world faced a significant downturn as major US tech companies experienced a selloff that rippled across global stock exchanges. The Japanese market was hit hard early, but the UK's leading stock indexes were not spared from the turbulence.

The FTSE 100, a key indicator of the health of UK's biggest traded companies is down 0.34%, rallying in the last hour or so after a more difficult morning. The FTSE 250, which represents a broader range of mid-cap businesses, saw a more pronounced dip of 0.87%.

The implications of the US tech sector's distress were also felt in Asia, where Tokyo's Nikkei 225 shed 3.28%, losing more than 1,000 points during trading.

Among the tech heavyweights, Tesla (NASDAQ:TSLA), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) were pinpointed as major contributors to the market slide.

Their substantial losses highlight growing investor concerns about valuation and future earnings in a sector that has been a driving force in stock market gains in recent years.

Elsewhere in the market, Universal Music Group's shares encountered a steep 28% fall after a downgrade by analysts, who cited worries over the sustainability of streaming revenue. In the luxury goods sector, Kering, the parent company of Gucci, projected a significant profit hit in the latter half of the year, attributing it to a decline in demand for luxury items.

Broadcasting company ITV (LON: ITV) faced financial struggles, reporting a dip in revenues for the first half of the year and shares falling 5%. The setback was attributed largely to the impact of Hollywood strikes on its production business, underlining the sensitive interplay between industrial action and corporate profits.

In the banking sector, Revolut, a prominent Financial Technology company, received a UK banking license, albeit with restrictions, from the Prudential Regulation Authority. This marks a significant milestone for the digital bank as it aims to expand its offerings and solidify its position in the financial services industry.

5 UK Stocks With Huge Potential

If you're looking for the best UK stocks to add to your portfolio, then you're in luck. Before you decide where to invest you will want to see this special report on 5 UK Stocks to Watch in 2024

Our team of expert analysts have picked out the 5 stocks they think have the biggest potential for growth in 2024 and beyond.

We're giving away this valuable research for FREE!

Click here to secure your copy