MARKETS LIVE: Wall Street opens lower as AI jitters return
1:45pm: Another blow
Rising oil prices have dealt another blow to stock market sentiment, with Brent crude climbing above its May highs as fears of further escalation mount, according to IG chief market analyst Chris Beauchamp.
“Everyone is on notice for potential US attacks on Iran in conjunction with Israel, and as a result Brent crude futures have lurched to their highest level in over four years,” Beauchamp commented.
“Trump wanted a legacy, and he appears to have got it. This time around there is likely to be little breathing room for the global economy – energy stockpiles are much reduced, and Iran is unlikely to hold back this time from a broader range of responses to an attack.
“This could all get very ugly, very quickly.”
12:10pm: FTSE in the red
The UK’s major index finished 0.3% lower on Friday at 10,690 points.
That means the FTSE 100 lost nearly 1.8% this week as AI spending concerns mount and oil prices continued to gain.
11:15am: OpenAI valuation lowers
OpenAI (Unlisted:OPAI) has cut its target valuation for a planned $30 billion fundraising round to $1.25 trillion from $1.4 trillion after encountering resistance from prospective investors.
The revised target comes as investors question the scale of spending required to develop artificial intelligence (AI) models and build the computing infrastructure needed to support them.
Bloomberg reported that negotiations had entered their final stages, although the terms remain subject to change as OpenAI seeks commitments from investors.
The ChatGPT developer, according to the Financial Times, last raised $122 billion in March, when its valuation reached $852 billion, and is now seeking fresh capital to support its operations ahead of a potential stock market listing.
10:00 am ET: US investors remain cautious
Wall Street’s main indexes opened lower on Friday as investors remained cautious after a sharp sell-off in AI-linked stocks.
The Dow Jones Industrial Average fell 171.3 points, or 0.32%, to 52,696.7 at the open, while the S&P 500 dropped 26.2 points, or 0.34%, to 7,637.18.
The Nasdaq Composite declined 114.9 points, or 0.44%, to 25,893.953 at the opening bell.
In the first few minutes of trade, Nvidia shares fell 0.63% to US$210.88, while Intel was almost flat, down 0.05% to US$85.45, as investors watched for signs of continued pressure on semiconductor stocks.
Nvidia shares then rose 0.09% to US$212.40.
Oil prices rose on Friday, with Brent crude reaching its highest level since early May after Houthi attacks in Saudi Arabia heightened concerns over further disruption to Middle East energy supplies, while authorities in the United Arab Emirates also reported an oil spill.
At 9am ET, Brent crude futures rose US$1.71, or 1.5%, to US$114.99 a barrel, after earlier touching US$115.16, the highest level since 4 May, reports Reuters.
US West Texas Intermediate crude gained US$1.80, or 1.8%, to US$101.27 a barrel.
Exxon Mobil rose 0.95% to US$179.93, when Wall Street opened on Friday, amid higher oil prices.
American Express raised its 2026 profit forecast above Wall Street expectations on Friday after strong third-quarter results, while announcing plans to cut 5% of its global workforce as part of a restructuring.
Its shares fell 2.54% to US$316.90, extending its losses.
British stocks extended losses on Friday, putting the FTSE 100 on track to end a two-week winning streak.
At 2:47 pm BST, the FTSE 100 was down 0.59%, or 63.0p, to 10,662.02, extending losses in the UK blue-chip index.
The FTSE 250 slipped into the red at 2: 55 pm BST, falling 0.12%, or 28p to 24,182.84, reversing its earlier modest gains.
UBS has maintained its attractive view on global equities, saying resilient economic growth, solid earnings and accelerating artificial intelligence investment should support markets despite higher bond yields and energy prices.
The bank forecasts the MSCI All Country World Index will rise from 1,359 on 14 September 2026 to 1,460 by December 2026 and 1,510 by June 2027.
9:00 am EDT: Best of the brokers
On Wall Street, selling pressure has intensified, particularly in Dow futures at this hour.
US stock futures have weakened over the past hour.
Nasdaq 100 futures: 29,034.25, down 107.75p (0.37%).
Dow Jones futures dropped 0.89% to 52,594.
S&P 500 futures declined 0.46% to 7,668.75.
The FTSE 100 was down 64p to 10,660.88.
The FTSE 250 edged up, gaining 21p to 24,233.51 at 1: 54 pm BST.
8:00 am EDT: US stock futures down
US stock futures fell on Friday as concerns over AI valuations persisted.
Brent crude rose 1% to US$114.31 a barrel by 6:06 am EDT, after touching US$114.72, its highest level since 4 May, as Houthi attacks in Saudi Arabia heightened concerns over disruption to Middle East energy supplies; US West Texas Intermediate gained 1.7% to US$101.12, reports Yahoo finance.
In pre-market trading, SpaceX rose 1.75% to US$147.28 and Intel gained 0.83% to US$86.20.
Gold futures fell to their lowest level since late July, with December contracts down 0.4% at the open before slipping to US$4,039.50 a troy ounce by 7:12 am EDT, as rising oil prices and Middle East tensions weighed on the metal.
Bitcoin traded near US$81,500, holding within a range of less than US$1,000 after a by and large volatile week.
In London, the FTSE 100 remained under pressure post lunch, while the FTSE 250 extended its recovery, rising 0.24% to 24,270.53 as the blue-chip index fell 0.47% to 10,674.51.
Markets here look ahead to finance minister John Healey’s first Budget next week, as UK shares remain on course for weekly losses, according to Reuters.
12:00 am BST: Mid-caps outperform
The FTSE 100 remains under pressure, while the FTSE 250 extended its gains and outperformed the blue-chip index.
The FTSE 100 was down 0.56% to 10,673, down 51p.
The FTSE 250 rose 0.22% to 24,265, gaining 53p.
US stock futures were mostly lower on Friday after a tech-sector sell-off in the previous session.
At 6:48 am EDT, Nasdaq 100 futures for December 2026 edged up 4.50 points to 29,146.50, indicating a broadly flat start for US technology stocks.
Brent crude was trading at US$114.13 a barrel, up 0.85% because of growing Middle East tensions.
At 11:40 am BST, spot gold is trading at US$4,021.95 an ounce, down US$22.77, or 0.56%.
The decline points to modest selling pressure in gold.
Sterling edged up to a fresh 17-month high against the euro on Friday and remained on track for a fourth consecutive weekly gain, after UK economic data sent mixed signals about the economy. reports Reuters.
At 11:46 am BST, though, it had eased a bit at 0.04% to €1.1943.
11:00 am BST: Small-cap Round-Up
Shares in Huddled Group PLC (AIM:HUD) (Huddled Group PLC (AIM:HUD), FRA:6XK), the live-commerce company, rose 14% to 0.825p on Friday morning, after it agreed to buy AEWW, its joint venture partner on the Whatnot platform.
Catenai PLC (AIM:CTEA) (Catenai PLC (AIM:CTEA)), the digital media and technology services provider, fell 37% to 0.06p on Friday morning, after an application was filed to appoint an administrator for Klarian, a company to which it had lent money.
European markets edged lower on Friday as disappointing corporate results, rising oil prices and France’s political and fiscal uncertainty weighed on investor sentiment.
At 10:55 am BST, however, the FTSE 250 edged into positive territory, rising 0.05% to 24,219, up 7.80p, after trading lower earlier.
But the FTSE 100 continues to be down at 59p to 10,665.
10.00 am: Resources rally fails to reverse wider decline
The FTSE 100 extended its decline to 62 points, or 0.6%, at 10,663, leaving the index close to its intraday low of 10,662.
BP led the blue-chip risers with a 1.9% gain as Brent crude reached a five-month high of around US$114 a barrel amid concerns about disruption to global oil supplies.
Shell advanced 1.5%, maintaining the strong performance across energy shares.
Mining and industrial stocks also provided support, with Antofagasta up 1.9%, Anglo American gaining 1.5% and mining-equipment specialist Weir rising 1.4%.
The resources rally was not enough to offset wider weakness following Thursday’s technology-led sell-off on Wall Street and disappointing UK retail sales figures.
Fresh economic data provided a brighter signal after the S&P Global composite purchasing managers’ index rose to 53.1 in October from 52 in September, beating forecasts and recording its highest reading since February.
New business increased at its fastest rate since September 2024, while private-sector employment returned to growth for the first time in two years.
9.00am BST: Resources stocks limit London losses
The FTSE 100 fell 34 points, or 0.3%, to 10,690.57 as wider market caution outweighed strong gains across energy and mining shares.
BP topped the blue-chip risers with a 2% advance, followed by Ithaca Energy, up 1.7%, and Shell, which gained 1.3%. Brent crude traded around $114 a barrel—its highest level in five months as geopolitical tensions heightened concerns about possible supply disruption.
Mining and industrial stocks also provided support. Antofagasta rose 1.5%, Anglo American gained 1.5% and mining-equipment specialist Weir advanced 1.5%. IMI and Spirax added 1% and 0.7% respectively.
The gains were insufficient to reverse the wider decline following a technology-led sell-off on Wall Street and weaker UK consumer data. Retail sales fell 0.4% in September, while consumer confidence deteriorated sharply in October.
The domestically focused FTSE 250 slipped 0.1% to 24,193.61. The FTSE 350 declined 0.3%, while the AIM All-Share lost 0.3%.
8.15am BST: Commodity stocks support London
The FTSE 100 opened almost unchanged, adding four points to 10,729 as gains for mining and oil shares offset concerns about weakening consumer spending.
Anglo American PLC (LSE:AAL) led the blue-chip risers with a 2.1% advance to 3,702p, recovering some of Thursday’s 5.6% decline.
BP PLC (LSE:BP.) gained 1.6% to 621.7p and Ithaca Energy PLC (LSE:ITH) rose 1.3% to 293.4p as Brent crude climbed another 1% to US$114 a barrel amid continuing concerns about Middle East supplies.
Consumer confidence added to the cautious mood after the GfK index dropped 11 points to minus 24 amid higher energy costs, borrowing expenses and uncertainty before the Budget.
Sterling was little changed following the retail figures as investors awaited the preliminary UK manufacturing and services purchasing managers’ indices at 9.30am BST.
7.00 am BST: London eyes cautious rebound
The FTSE 100 is expected to open modestly higher, with futures trading near 10,762 after the index closed 28 points, or 0.3%, lower at 10,725 on Thursday.
London’s energy-heavy benchmark could receive support from oil producers after Brent crude climbed above US$114 a barrel as renewed Middle East tensions increased concerns about global supplies.
Wall Street provided a weak wider lead as renewed doubts about the cost and returns of artificial-intelligence investment triggered another technology sell-off.
The Nasdaq Composite tumbled 2.6% to 26,009 and the S&P 500 fell 1.2% to 7,663, while the less technology-focused Dow Jones finished virtually unchanged.
Australia’s ASX 200 closed two points higher at 8,795 as gains among financial and consumer shares offset falls across mining and technology stocks.
Not all Asian markets had closed by 7am BST, with the Nikkei and Kospi still trading lower during their final half-hour while Hong Kong advanced and mainland Chinese shares declined.
Gold traded near $4,021 an ounce after Thursday’s sharp fall, while copper remained under pressure and Bitcoin changed hands around $81,700.
Sterling was close to $1.34 ahead of September retail-sales figures, which are expected to show a 0.2% monthly decline following August’s 0.5% increase.
UK consumer confidence has already weakened sharply, with the GfK index dropping 11 points to minus 24 amid rising energy costs, mortgage rates and uncertainty before the Budget.
October’s preliminary UK manufacturing and services surveys are due at 9.30am BST, while the London corporate diary includes Rightmove, Computacenter and Kainos.