FTSE 100 suffers sharpest drop since april

London’s FTSE 100 fell 123 points on Tuesday, marking its worst single-day decline in months as tech and AI-linked stocks led the downturn.

The index dropped 1.27%, closing at 9,552 points, with analysts pointing to overstretched valuations in major technology firms as a key driver of the sell-off. Rising concerns about the sustainability of the AI-driven market rally have further pressured investor sentiment.

The shock withdrawal of more than $1 trillion from the global cryptocurrency market in recent weeks has added to financial volatility, amplifying risk aversion across Europe. Market strategists warn that unless upcoming macroeconomic data show clearer signs of easing inflation, European indexes may face additional corrections in the weeks ahead.