London’s blue-chip index closed in the red on Friday as a report suggesting OpenAI may postpone its highly anticipated stock market listing dampened investor sentiment across global markets.
The FTSE 100 ended the session down 21.87 points, or 0.2%, closing at 10,508.02, while the FTSE 250 fell 14.22 points, or 0.1%, to 23,147.19.
The AIM All-Share also declined, shedding 1.57 points, or 0.2%, to finish at 770.35 at the end of the trading week.
For the week as a whole, the FTSE 100 managed a 1.4% gain, though the FTSE 250 slipped 0.2% and the AIM All-Share fell a sharper 3.4%.
European markets fared worse, with Paris’s CAC 40 closing down 0.6% and Frankfurt’s DAX 40 dropping 1.3% on the day.
The New York Times reported that OpenAI is considering pushing its listing back from late 2026 into 2027, citing fears it will not attract sufficient investor interest to support a one trillion dollar valuation.
Kathleen Brooks, research director at XTB, said the delay has weighed on market mood, noting there were already concerns that the market could not absorb this amount of equity issuance, especially following the SpaceX listing.
“If OpenAI and Anthropic stagger their IPOs over the next 18 months or so, the market may be better placed to absorb these new listings,” Brooks said.
Technology stocks had already been under pressure after both Apple and Microsoft raised prices for products, citing rising component and storage costs including higher memory prices.
Stephen Innes at SPI Investment Management said the AI trade is “widening” and “consumers may increasingly be asked to fund the bill” as costs ripple through the broader economy.
“The AI buildout is rapidly becoming a new source of cost pressure across the economy, and it is no longer confined to a few expensive Nvidia chips or hyperscaler earnings calls,” Innes added.
“The appetite for compute is pulling through demand for memory, storage, power, transformers, cooling systems, fibre, generators and skilled electrical labour. This is what happens when a digital revolution runs headlong into a very physical world.”
Asian markets were hit hard, with South Korea’s Kospi closing down 5.8% after a volatile week for chip giant SK Hynix, whose shares shed 8.4% on Friday alone.
Tokyo’s Nikkei 225 fell 4.2%, with tech investment giant SoftBank plunging 13% as sentiment toward the AI and semiconductor sector soured sharply.
On the FTSE 100, investors rotated into defensive names, with British American Tobacco and Imperial Brands rising 1.1% and 0.8% respectively, while food retailers Tesco and J Sainsbury gained 1.1% and 1.5%.
British American Tobacco also announced plans to start a new share buyback programme beginning next Tuesday and running until July 29.
Housebuilders retreated following reports that Andy Burnham, the likely next UK prime minister, is considering replacing council tax and stamp duty with a single annual property tax.
JPMorgan analyst Zaim Beekawa noted that while removing stamp duty would likely be positive for transactions, continued speculation may weigh on activity as buyers wait to see what changes emerge before committing to a purchase.
Barratt Redrow fell 1.3%, Persimmon dropped 1.7%, and Berkeley Group declined 3.6% after Berenberg downgraded the stock to ‘hold’ from ‘buy’, citing less compelling valuation and upside relative to other sector opportunities.
Brent crude for August delivery fell to 71.49 dollars a barrel, down from 74.42 dollars on Thursday, as fears over a shipping incident in the Strait of Hormuz eased after the vessel and crew were confirmed unharmed.
Gold rose to 4,085.63 dollars an ounce on Friday from 4,025.66 dollars on Thursday, with David Morrison at Trade Nation warning it may be “too early to sound the ‘all clear'” despite bulls hoping the 4,000 dollar level now acts as support.