London’s FTSE 100 is expected to open marginally lower on Friday after a strong week of gains, while Asian stock markets rebounded as comments from Nvidia chief executive Jensen Huang helped ease concerns over artificial intelligence investment and financing.
FTSE 100 futures indicate the blue-chip index will open around six points lower at 10,834, following Thursday’s 115.49-point surge to 10,840.35.
Despite the anticipated decline, the FTSE 100 has gained 2.7% so far this week, outperforming several global markets as its relatively limited exposure to technology stocks helped shield it from the recent AI-driven sell-off.
Wall Street recovered on Thursday, with the Dow Jones Industrial Average rising 1.1%, the S&P 500 gaining 0.3% and the Nasdaq Composite edging 0.1% higher.
Asian markets followed the positive trend on Friday, with Japan’s Nikkei 225 climbing 1.9% after plunging almost 5% in the previous session.
Hong Kong’s Hang Seng advanced 1%, Australia’s S&P/ASX 200 gained 1%, and China’s Shanghai Composite rose 0.2%.
The recovery followed comments from Nvidia chief executive Jensen Huang defending AI cloud infrastructure provider CoreWeave, which had suffered heavy selling pressure amid concerns about its borrowing and financing arrangements.
Huang said CoreWeave’s financial position was improving and that its cost of capital was declining, helping reassure investors about the company’s ability to finance its expansion.
CoreWeave shares recovered 5.9% on Thursday after falling 15% on Wednesday, reflecting the sharp swings affecting companies exposed to the artificial intelligence infrastructure boom.
Concerns over rising debt levels, substantial capital expenditure and uncertain investment returns have weighed heavily on AI-related stocks throughout the week.
SPI Asset Management analyst Stephen Innes said Huang’s intervention had helped stabilise sentiment towards specialist AI cloud providers, although broader questions surrounding the sector’s financing requirements remain.
The rebound in technology stocks provided some relief to global markets, with investors reassessing whether the recent sell-off reflected deteriorating fundamentals or a correction following strong gains.
Meanwhile, US Treasury yields remained relatively stable, with the benchmark 10-year yield easing to 5.09% from 5.10%, while the 30-year yield edged higher to 5.43%.
In currency markets, sterling strengthened to $1.3292 against the dollar, compared with $1.3254 at Thursday’s London close, while also advancing against the euro to €1.1839.
The euro climbed to $1.1222, while the dollar weakened slightly against the Japanese yen to ¥157.87.
Gold rose to $4,171.41 an ounce, supported by continued investor demand for defensive assets, while Brent crude declined to $105.33 a barrel from $106.33.
Friday’s economic calendar includes eurozone inflation figures and US industrial production data, both of which could influence expectations for interest rates and global economic growth.
The FTSE 100 remains on course for a strong weekly performance, with investors watching whether the recovery in global technology shares can be sustained following a volatile period for AI-related investments.
