FTSE 100 Falls as Inflation Fears Offset Nvidia Gains

The FTSE 100 closed down 0.8% on Thursday, falling 85.58 points to 10,792.54. Investor anxiety regarding sticky inflation and potential interest rate hikes offset gains in the technology sector, preventing the London market from following a positive trend seen on Wall Street.

Nvidia drove gains in U.S. indices with a 7.5% jump following strong second-quarter earnings and a revenue growth forecast of 70% for financial 2028. Despite this momentum, broader European markets remained volatile; the Cac 40 fell 1.7% while the Dax 40 rose 0.3% amid signals that the European Central Bank may move toward further tightening.

Monetary policy concerns intensified as Cleveland Federal Reserve President Beth Hammack advocated for higher interest rates, stating that inflation remains too far from the central bank's goal. Markets are now awaiting a speech from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium for further direction on U.S. interest rate policy.