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.
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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.
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