AI sell-off deepens as chip stocks slump: Market retreat live 2026

The ongoing AI sell-off has deepened as chip stocks slump, triggering a broad market retreat that is rattling investors across global exchanges. European markets opened mixed this morning, with the Stoxx Europe 600 edging up 0.1% while the UK’s FTSE 100 slipped 0.1%. Meanwhile, oil prices continue to fall, with Brent crude down 2.7% to $85.95 a barrel.

European Markets Mixed as AI sell-off Intensifies

The chip stocks slump is leading the decline in technology sectors, with semiconductor shares under pressure from renewed trade tensions and profit-taking. The AI-driven rally that lifted markets earlier this year now faces a sharp reversal as investors reassess valuations. The Stoxx Europe 600’s slight gain was supported by defensive sectors, while the FTSE 100’s dip reflected weakness in energy and mining stocks.

Unilever Warns of Price Increases

Consumer goods giant Unilever—owner of Dove soap and Hellmann’s mayonnaise—reported better-than-expected second-quarter underlying sales growth of 5.8%, driven by higher volumes and prices. However, the company warned that underlying price growth could accelerate in the second half of the year as commodity costs persist. CEO Fernando Fernandez said, “We have delivered a strong volume-led performance… the best volume quarter at Unilever in over a decade.” Unilever now expects full-year 2026 underlying sales growth of 4%–6%, up from its prior forecast at the bottom end of that range. Shares rose 5% in early trading.

Barclays Investment Bank Shines

Barclays reported a strong quarter, with its investment bank doing much of the heavy lifting. Senior equity analyst Matt Britzman of Hargreaves Lansdown noted that costs were higher than expected, but income grew faster. The combination of a larger dividend and a £1 billion share buyback adds weight to encouraging numbers. Barclays raised its full-year income target and expects more benefit from core banking activities. UK lending is growing, and the investment bank is delivering healthier returns, though it still has more to prove.

Key Market Indicators

Key Takeaways

• The AI sell-off and chip stocks slump are driving a broader market retreat.
• European stocks show mixed results; oil prices fall amid demand concerns.
• Unilever warns of price increases despite strong volume growth.
• Barclays raises income target after a robust investment banking performance.
• Investors should monitor trade policy and commodity costs for further volatility.

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