The FTSE 100 index declined by 108.72 points on Friday, November 6, 2026, closing at 10,673.94. The 1.0% drop followed a sharp sell-off in U.S. technology stocks on Thursday, which saw the Nasdaq Composite fall 5.5% into correction territory.
The market movement occurred as investors assessed the impact of Democratic midterm election victories on the technology sector. UBS analysts noted that newly elected officials had campaigned against data centers, with 415 local moratoriums on construction currently active. Analysts suggested that the "AI story" may be moving to a lower gear as political shifts affect the timeline for monetizing artificial intelligence investments.
In the United Kingdom, the FTSE 250 also fell by 0.8%, while the AIM all-share index slipped 0.4%. Significant individual movers included BT Group, which fell 6.4%, and Man Group, which dropped 7.7% after a London High Court ruling found two of its subsidiaries liable for approximately $155 million in a corruption case involving Kuwait’s state pension fund. Conversely, International Consolidated Airlines (IAG) rose 1.5% despite a third-quarter profit miss, as it highlighted a positive demand outlook.
The Nasdaq drop of more than 10% below its recent record high reflects concerns regarding the rapid growth of artificial intelligence. For U.S. households and workers, the economic environment is further complicated by a resilient labor market. Nonfarm payrolls grew by 165,000 in October 2026, higher than the 65,000 predicted by analysts, while unemployment fell to 4.1%. This strength increases the likelihood that the Federal Reserve will raise interest rates by 25 basis points in December. Higher interest rates typically translate to increased borrowing costs for mortgages, credit cards, and business loans.
The next steps for global markets involve a series of data releases and policy meetings. U.S. inflation data is scheduled for release next week, followed by the next jobs report on December 4. These figures will lead into the Federal Open Market Committee meeting on December 9-10, where officials will decide whether to proceed with a rate hike or hold steady if the technology market volatility continues. In the U.K., investors will monitor upcoming corporate results from firms like Kingspan and Kainos on Monday, November 9.