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The FTSE 100 recovered ground on Wednesday, supported by gains in utilities and housebuilders, even as mining stocks lagged. The index rose 7.35 points to 9203.01, with traders weighing heavyweight investment announcements from Microsoft and GSK alongside fresh inflation data and the US Federal Reserve’s rate decision.
Technology giant Microsoft pledged its largest-ever UK commitment, announcing a $30 billion (£22 billion) investment spread over four years.
Half the funds will go into capital expenditure, including the construction of the country’s most powerful supercomputer equipped with 23,000 NVIDIA GPUs in partnership with Nscale.
The announcement coincided with US President Donald Trump’s second state visit and was accompanied by a broader UK-US tech deal covering AI, quantum computing, and nuclear research.
Pharma major GSK also made headlines, unveiling a $30 billion investment in the United States over the next five years. The funds will bolster R&D and supply chain infrastructure, including a new $1.2 billion biologics facility.
The plan also includes upgrades across five US manufacturing sites, with a strong emphasis on AI and digital technologies.
Centrica gained 2% to £167.2, while housebuilders benefited from resilient updates. Barratt Redrow rose £3.5 to £369.7 on stronger-than-expected profits, although management flagged limited growth ahead of the November Budget. Persimmon added £9 to £1101.5 and Taylor Wimpey firmed £0.6 to £97.7.
Miners dragged on the index. Fresnillo slid 3% to £2178, Anglo American shed £32 to £2544, and Rio Tinto eased £38 to £4611.5. In the mid-cap FTSE 250, Moonpig surged 7% to £212 after confirming it remains on track to meet 2026 financial guidance.
Investors also remained focused on global macro signals. The Federal Reserve is expected to cut rates by 25 basis points, lowering the fed funds target rate down to 4%-4.25%. The market will pay close attention to Chair Jerome Powell’s comments for indications of the potential path of further cuts.
The UK’s headline rate of inflation was unchanged at 3.8%; however, food and drink inflation increased to 5.1%, the highest rate since early 2024.
Prices of staples such as butter, coffee and beef recorded very large double-digit increases. Analysts are predicting inflation could rise above 4% in September, before declining into 2026.
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With FTSE 100 stabilizing and large corporations such as GSK and Microsoft investing billions into long-term projects, boosting the near-term sentiment. Investors remain cautious, however, as elevated food inflation, budget uncertainty, and pending central bank decisions continue to cloud the outlook.
