FTSE 100 Holds Steady as Wall Street Gains; Investors Watch Tariffs and AI Developments
The FTSE 100 (^FTSE) remained largely flat in Tuesday’s afternoon trading, while Wall Street saw modest gains. Investors are balancing two key factors: ongoing concerns over US tariffs and the potential disruption from artificial intelligence (AI).
Trump Implements New Global Tariffs
The US president’s latest 10% global tariff came into effect on Tuesday, just days after the US Supreme Court blocked his previous broad-based duties. Announced on Friday, the tariff targets a wide range of imports and is part of the administration’s ongoing trade measures.
President Trump signaled over the weekend that he might raise this tariff to 15%, though no formal implementation has occurred yet. Reports from Bloomberg suggest the White House is preparing a formal order to increase the rate.
Currently, Trump is applying the 10% tariff under Section 122 of the Trade Act of 1974, which allows the president to impose such duties for up to 150 days.
Jim Reid, Global Head of Macro Research and Thematic Strategy at Deutsche Bank, noted:
“Remember that Trump’s delivering the State of the Union address tonight, so it’s possible we might get a better sense of the next steps on tariffs.”
AI Disruption Continues to Influence Markets
Meanwhile, AI-related developments remain in focus. Monday saw a decline in IT consulting stocks following the launch of Anthropic’s latest AI tool, reflecting investor caution around potential AI disruption.
Anthropic is set to host a major event later on Tuesday, showcasing product updates and new feature demonstrations, which could influence market sentiment further.
Investors are keeping a close watch on both trade policy and technology innovation, as these factors continue to drive volatility in global markets.
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