FTSE surges, tech suffers and Netflix rises as Paramount shunned by Warner Bros

The bounce in tech names is fizzling out while the FTSE 100 surges, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

FTSE 100 at one-month high but Wall Street struggles

The optimism shown in the FTSE is not being replicated on Wall Street, where a positive session for futures has given way to more selling in the cash session. Once again it is tech leading the way to the downside, with notable losses for Nvidia and Alphabet. Concerns about AI have reared their head again, weighing on sentiment just as the Santa rally was meant to get underway. It has been a better day for commodities however, as investors move away from tech and seek exposure to other sectors better placed to benefit from the next wave of US economic growth.

Paramount defeated in Warner Bros bid

Netflix has been rallying following news that Warner Bros will look to join itself with the streaming giant. While a hefty price tag, the news promises to expand Netflix’s vital content library, an essential tool in the battle to keep existing and attract new subscribers. Having recently fallen to an eight-month low, the shares look much cheaper compared to their summer highs, providing a nice contrast to the AI trade where overvaluation fears remain high.