FTSE 100 Could Outlast Nasdaq 100 if AI Rally Breaks, Capital Markets Says
Updated
Updated · Yahoo Finance · Aug 8
FTSE 100 Could Outlast Nasdaq 100 if AI Rally Breaks, Capital Markets Says
3 articles · Updated · Yahoo Finance · Aug 8
Summary
FTSE 100 has gained 9.21% this year and about 2% in the past month, while the Nasdaq 100 is up 12.17% year-to-date but down 3.6% over the month.
Capital Markets says that relative resilience reflects the UK market’s far lower tech exposure: technology, IT and communication services are about 3% of MSCI UK now, down from roughly 30% in the dotcom era.
That shift matters because UK equities fell around 40% in dollar terms during the early-2000s tech crash, versus roughly 50% for U.S. equities, when Britain was more exposed to the sector.
The firm also argues a fresh AI unwind would be cushioned by a still-resilient U.S. economy and could weaken the dollar if Fed easing and slower capital inflows reduce support for U.S. assets.