FTSE 100 Drops as AI Speculation Concerns Hit Tech

The FTSE 100 closed at 10,650.33 on Tuesday, erasing early gains amid growing concerns over technology valuations and the high cost of AI infrastructure. Global semiconductor shares, including Samsung Electronics and SK Hynix, declined following reports that China's ChangXin Memory Technologies has made significant advances in memory-chip technology.

Market sentiment was further dampened by Broadcom CEO Hock Tan, who compared current AI investing to a casino and suggested the trade has become speculative. Similar declines were seen in the U.S. Dow Jones, S&P 500, and Nasdaq Composite, although strong earnings from Goldman Sachs and JP Morgan Chase suggested broader economic stability.

In corporate developments, the London Stock Exchange Group saw its shares fall 4.7% after confirming negotiations to acquire the financial data firm Octus from Permira for $3.5 billion. Conversely, Melrose Industries shares rose as U.S. authorities began winding up an investigation into a safety incident at a California site.