FTSE 100 Subdued as Gains from Less Hawkish Fed Comments Tempered by Global Caution Over Tech Valuations
London's FTSE 100 edged up just 0.1% as Federal Reserve Chair Powell's dovish stance sparked rotation into defensive healthcare stocks, while tech weakness from AI valuation concerns limited broader gains.
Insights:
London's blue-chip FTSE 100 index held steady on Thursday, rising just 0.1% by 1043 GMT, as investors digested the U.S. Federal Reserve's less hawkish stance with cautious optimism tempered by persistent concerns over technology sector valuations. The mid-cap FTSE 250 index remained little changed during the session.
The Federal Reserve delivered an expected 25 basis point rate cut on Wednesday in a divided vote, but signaled that further reductions would be limited in the near term as policymakers await greater clarity on labor market conditions. While Fed Chair Jerome Powell emphasized a wait-and-watch approach, analysts interpreted the messaging as less aggressive than feared.
