Big tech shares linked to AI shed about $1.2tn as investors questioned lofty valuations amid signs of a US slowdown. The Nasdaq fell 4.6%, putting Wall St on course for its worst week since April. Declines were led by Nvidia, Microsoft and Apple, with sentiment turning against richly priced growth stocks.

The BoE kept Bank Rate at 4% after a narrow MPC split, citing easing inflation but sticky services costs. It hinted a cut as soon as next month if data allow, aiming to support a weak economy while keeping price growth on track to target. Markets priced in earlier easing.

Nvidia’s Jensen Huang says China is poised to overtake the US in AI, citing cheaper energy, quicker permitting and looser rules. He warns western cynicism and high power costs are slowing data centre expansion, urging major investment in computing to stay competitive.

Rachel Reeves signalled she may drop the pledge not to raise income tax, citing rising debt costs. She told MPs the “broadest shoulders” should pay more, preparing ground for Budget moves likely to target higher earners and reliefs to help stabilise the public finances.