The final week of October exposed a sharp split in world markets. In the United States, worries about the scale of spending on artificial intelligence dragged technology shares lower, while several European benchmarks advanced. The result was a week in which where a market was listed mattered almost as much as what it held.

Wall Street retreats on AI doubts

The Nasdaq Composite fell 2.00% over the five sessions to 30 October, with the S&P 500 down 0.57% and the Dow Jones Industrial Average down 0.85%. Smaller US companies bucked the trend, with the Russell 2000 gaining 1.29%, a sign that investors were rotating away from the largest technology names rather than abandoning shares altogether. Disappointing results from Amazon and Intel added to the pressure late in the week.

Europe holds its ground

European markets proved more resilient. Germany's DAX rose 2.53% and France's CAC 40 gained 2.40% over the same period, while the MSCI Europe index advanced 0.83%. London's FTSE 100 rose 0.37% on the week and closed Friday at 10,729.78, up just 0.07% on the day after paring earlier gains. AstraZeneca and BT Group were among the risers, helped by strong results, while banks weighed after NatWest fell.

What to watch next

The divergence leaves investors watching whether the US technology sell-off spreads or stays contained. Friday's broader risk reduction was a reminder that regional gains can still be exposed to developments in US markets, and the week ahead brings the OPEC+ meeting, US midterm elections and the US jobs report.