London’s benchmark index fell on Thursday, erasing early gains from a technology bounce tied to Nvidia’s blockbuster forecast, as traders braced for a Jackson Hole speech by Federal Reserve chair Kevin Warsh and digested fresh signals that US price pressures remain sticky.

Nvidia’s glow fails to cross the Atlantic

The FTSE 100 closed 85.58 points lower at 10,792.54, a decline of 0.8 percent, while the FTSE 250 edged up to 24,898.86 and the AIM All-Share slipped 0.2 percent to 813.11. In New York, the mood was markedly different: the Dow Jones Industrial Average rose 0.5 percent, the S&P 500 added 0.7 percent and the Nasdaq Composite climbed 1.3 percent by the time London shut. Nvidia surged 7.5 percent after projecting 70 percent revenue growth for its financial year ending January 2028, well above the 45 percent analysts had modeled. Chief financial officer Colette Kress called it a “supply constrained outlook,” and chief executive Jensen Huang described the coming year as “pretty extraordinary.” London’s tech-exposed names followed suit, Computacenter jumped 7.3 percent, Polar Capital Technology Trust gained 1.5 percent and Scottish Mortgage Investment Trust rose 0.8 percent, but the rally did not broaden. AJ Bell’s Dan Coatsworth observed that the enthusiasm around Nvidia’s results stayed confined to a narrow slice of the market.

Inflation data keeps Fed hawks vocal

Wednesday’s US inflation readings reinforced the case for further tightening. Cleveland Fed president Beth Hammack, speaking from the Jackson Hole symposium, said recent data show the central bank remains too far from its target and added, “I don’t want to prejudge anything. But I believe now is the time to act.” Wealth Club’s Susannah Streeter warned that sentiment is turning more cautious as investors refocus on sticky inflation, swelling government debt and the prospect of rates staying higher for longer. Warsh addresses the conference on Friday, though he has previously signaled reluctance to offer forward-looking guidance.

ECB minutes reveal tightening bias

European markets diverged: the CAC 40 fell 1.7 percent while the DAX 40 rose 0.3 percent. Minutes from the ECB’s July meeting, parsed by ING’s Carsten Brzeski, suggest the central bank is still wrestling with how to respond to a textbook supply-side shock. Rates were left unchanged, but president Christine Lagarde disclosed that some members had argued for a hike before ultimately backing the pause. Brzeski called that an important signal the ECB is edging closer to another increase, with the next meeting in two weeks.

Prudential weighs despite profit rise

On the FTSE 100, Prudential dropped 2.5 percent after reporting that new business profit grew 9.8 percent to $1.38 billion in the six months to June 30, up from $1.26 billion a year earlier and in line with consensus. Constant-currency growth was 8 percent. The market focused on the deceleration rather than the beat. US Treasury yields were little changed, with the 10-year at 4.66 percent and the 30-year at 5.18 percent. Sterling held steady at $1.3588 and €1.1663.