Records on Stock Exchanges in London and Madrid Amid Simultaneous Retreat from AI Sector in the US

Thursday's session on the financial markets provided evidence of a progressing divergence between the American and European markets. The main indices of the Old Continent, including the British FTSE 100 and the Spanish Ibex 35, managed to reach new, historic levels. These gains were primarily driven by the publication of financial results from local champions, which outweighed the uncertainty flowing from the tech sector across the ocean. Investors in Europe focused on the condition of traditional branches of the economy, allowing them to isolate themselves from the nervousness accompanying the valuations of companies related to artificial intelligence technology. The situation on Wall Street was quite different. Although Nvidia reported revenues of $68.13 billion, representing a 73% year-on-year increase, its shares lost nearly 5% during the session. Experts point out that the market has stopped reacting enthusiastically to results alone, beginning to question the long-term sustainability of the growth trend in the AI sector. Declines on the Nasdaq Composite dragged down other tech companies, initially creating selling pressure on the Old Continent as well. However, European indices quickly recovered their losses. In London, Rolls-Royce led the way, its share price rising by almost 5% after raising its annual forecasts. In Madrid, the company Indra stood out, recording over a 21% increase after publishing data on its record order portfolio. Since 2024, the technology sector has dominated global capital markets, leading to capital concentration in the so-called Magnificent Seven. The current situation may signal a rotation of capital towards undervalued sectors.On the Warsaw Stock Exchange, the mood was different. The WIG20, after initial stabilization, succumbed to afternoon selling pressure from foreign investors, ultimately losing 1.23%. The sell-off on the WSE was a direct reaction to the slump in New York indices shortly after the opening of the session there. The shares of PZU and KGHM fell the most, with the latter suffering due to the strengthening of the dollar and falling copper prices. Simultaneously, the commodities market saw increases in gas prices (+3.7%) and crude oil, which was a reaction to data on a significant decline in blue fuel inventories in the US certified by the EIA. „Three cheers for the UK stock market as it leaves the US in the rear-view mirror in performance terms this year.” — Dan Coatsworth

Perspektywy mediów: Liberal media emphasize the risk of an AI bubble and the need for proof of technology monetization by Silicon Valley giants. Conservative media focus on the record results of traditional industry in Europe and the resilience of national economies.