FTSE 100 Falls 2% in Global Selloff Driven by AI Concerns

The FTSE 100 is showing a sharp decline amid a global selloff triggered by artificial intelligence concerns, with the price trading at 10557, clearly below both the SMA20 and SMA50. Although RSI14 at 28.5 has approached oversold territory, MACD remains negative and below its signal line, indicating that downward momentum has not yet weakened. Even if short-term bargain buying emerges, the 1-3 day outlook remains bearish as the news flow weighs on risk appetite. A volatile trading pattern following the sharp drop should not be ruled out given the oversold conditions.

A selloff driven by global artificial intelligence concerns could put pressure on technology stocks such as GOOGL. The stock is already below its 20- and 50-day moving averages and shows weak momentum with an RSI of 42. The MACD is in negative territory but very close to its signal line, which is not oversold but also not a recovery signal. Downside risk is more pronounced in the short term, but the impact may remain limited because the news is not directly specific to GOOGL. A slightly negative bias is expected in the 1-3 day outlook.

NVDA has already fallen 12% in 24 hours and its RSI stands at 17.7, placing it in oversold territory; news of this kind can trigger panic selling in the short term. However, oversold conditions also set the stage for rebound buying, so directional uncertainty is high. MACD is negative and the price is below SMA20/SMA50, leaving the technical picture weak. The news is undermining global risk appetite, and high-beta stocks such as NVDA may be disproportionately affected. Downward pressure may persist over the next 1-3 days, but volatility should be expected after such a sharp decline.