The FTSE 100 has recorded its largest one-day fall since April, closing down 123 points, or 1.27%, at 9,552 points — its lowest close since 22 October. The decline is the steepest since 7 April, shortly after Donald Trump's 'Liberation Day' tariffs were announced.
Engineering firm Melrose led the fallers with a 3.9% drop, followed by copper producer Antofagasta (-3.7%) and private equity group 3i (-3.6%). The sell-off was driven by growing concerns over artificial intelligence valuations, with Asia-Pacific stocks also hitting a one-month low earlier in the day.
Fading hopes of a US interest rate cut in December and anxiety ahead of Nvidia's results due on Wednesday added to the market strain. Danni Hewson, head of financial analysis at AJ Bell, described the mood as 'palpable nerves', noting that the week's big news could determine whether the year ends 'with a bang or a pop'.
On Wall Street, Nvidia shares fell 2.3%, Microsoft lost 3.3%, and Alphabet dropped 2.6% despite the launch of its new Gemini 3 AI model. The S&P 500 is on track for its longest losing streak since August, with four consecutive daily declines.
