FTSE 100 Hits Record Then Retreats Amid AI Shock

The London stock market experienced a dramatic day on February 3, 2026, as the FTSE 100 briefly soared to a record intraday high before retreating, with a surge in precious metal prices colliding with sharp losses in technology and publishing stocks. The session’s twists and turns reflected a market caught between optimism over rebounding commodity prices and anxiety about the disruptive power of artificial intelligence.

Early in the day, the FTSE 100 touched an all-time intraday peak of 10,373, buoyed by a rebound in mining shares as gold, silver, and copper prices rallied from a recent selloff. According to Financial Times, gold was up 4% at 4,920, with silver and copper also climbing. Investors, who had recently witnessed a sharp sell-off in precious metals, appeared eager to buy the dip. Russ Mould, investment director at AJ Bell, summed up the mood: “The sharp sell-off in gold over the past few days has encouraged investors to buy on the dip, scooping up the precious metal in their droves and making it sparkle again. Gold has delivered such strong rewards to investors over the past year that many people will have treated the recent sell-off as a New Year’s sale, a chance to grab more metal at a discounted price. Gold bugs have doubled down rather than run for the hills.”

Mining stocks were among the biggest beneficiaries of this renewed enthusiasm. Endeavour Mining rallied 5% and Fresnillo added 3%, while Anglo American and Antofagasta each saw their shares rise by 3%. As Bloomberg noted, retail investment in precious metals soared, signaling that both institutional and individual investors were eager to capitalize on the rebound.

This surge in metals was not occurring in isolation. European stocks received an extra boost from a strong session in Asia, after India struck a significant trade deal with the United States. The agreement slashed US tariffs on Indian goods from 50% to 18%. Coming on the heels of India’s landmark Free Trade Agreement with the European Union, the deal was seen as a potential reset for investor sentiment and growth expectations after a weak 2025. James Thom, Senior Investment Director of Asian Equities at Aberdeen Investments, observed, “With the sharp cut in US tariffs from 50% to 18% in the US-India deal, and with this coming shortly after India sealed a landmark Free Trade Agreement with the European Union, the timing alone could reset investor sentiment and growth expectations significantly after a weak 2025.”

The improving international outlook helped lift cyclical sectors across European markets. In the UK, banks such as Lloyds and NatWest were among the risers, with Lloyds gaining 1.3% and NatWest up 1.2%. This reflected broader optimism about economic prospects, trade, and commodity demand.

But the buoyant mood would not last. As the session progressed, mounting losses in other sectors began to weigh heavily on the FTSE 100. The biggest drag came from RELX, a global provider of information-based analytics and decision tools, whose shares sank by a staggering 10%. According to Financial Times, this marked the steepest decline in RELX shares since 2008. The catalyst was the unveiling of a new artificial intelligence tool by Anthropic, an AI firm. The tool, designed for the legal industry, spooked investors by threatening to disrupt the business models of established legal software providers such as RELX.

The ripple effects of this technological disruption were felt far beyond RELX. Software, data, and advertising stocks across London, Europe, and the US were pummeled as the day went on. Bloomberg reported that the sell-off was particularly acute among companies perceived as vulnerable to rapid advances in AI, with RELX and AstraZeneca dragging the FTSE 100 lower by the session’s end. Pearson and Experian, both significant players in the information and analytics space, also suffered sharp declines as investors reassessed the risks posed by AI-driven competitors.

For many market participants, the day’s events underscored the double-edged sword of technological innovation. On one hand, AI promises efficiency and new capabilities, but on the other, it threatens established firms whose services could be rendered obsolete almost overnight. The anxiety was palpable in trading volumes and the sharpness of the declines. As the Financial Times highlighted, “the threat of an AI tool to London’s AI adopters cast a shadow over trade on Tuesday.”

This tension between old and new was mirrored in the broader market narrative. While commodity stocks surged on the back of a global trade boost and a rebound in metals, tech and data-centric firms found themselves on the defensive. The day’s split personality—gains for miners, losses for information providers—reflected deeper questions about where the next phase of market leadership will emerge.

Investors were left pondering whether the metals rally would prove sustainable, especially given the volatility that has characterized these markets in recent months. Bloomberg cautioned that while the rebound in gold, silver, and copper had helped mining stocks higher, it “probably augers more volatility to come, so watch this space.” The surge in retail investment in precious metals suggested that many were betting on continued gains, but as always, such optimism comes with risks.

Meanwhile, the fallout from the AI disruption is likely to reverberate for some time. The launch of Anthropic’s legal industry AI tool was a stark reminder of how quickly technological shifts can upend established players. For RELX and its peers, the challenge now is to adapt or risk further losses as the market reassesses the value of traditional software and analytics services in an AI-driven world.

Yet, amid the turbulence, there were also signs of resilience and adaptation. The strong showing by banks and cyclical sectors hinted at a market that is not ready to give up on growth just yet. The trade deals involving India, the US, and the EU provided a timely boost to sentiment, suggesting that global cooperation and open markets can still deliver positive surprises.

As the dust settled on February 3, 2026, the FTSE 100’s journey from record highs to a lower close served as a vivid illustration of the crosscurrents shaping global markets. With commodity prices rebounding, AI disruption accelerating, and international trade deals shifting the landscape, investors face no shortage of challenges—or opportunities—in the months ahead.

The day’s drama left traders and analysts alike catching their breath, wondering what surprises tomorrow might bring. For now, the only certainty is that volatility—and change—remain the market’s constant companions.