The FTSE 100 reached a new record high on Wednesday, rising as much as 0.7% to intraday levels above 10,950 points before settling up 0.3% at 10,908.41. This marks the highest level for the London benchmark since its launch in 1984 and follows a period of significant volatility amid geopolitical tensions and a global downturn in technology stocks.

While markets in the United States and Asia grappled with broad tech sell-offs driven by concerns over an overheated artificial intelligence (AI) sector, the FTSE 100 benefited from its limited exposure to high-growth tech companies. In particular, semiconductor stocks fell sharply in places such as South Korea and the U.S., with major chipmakers including Nvidia, AMD, and Micron experiencing steep declines. South Korea’s Kospi index dropped 6% on Wednesday after losing 11% on Tuesday, weighed down by tech giants Samsung and SK Hynix.

In contrast, the London market, dominated by traditional sectors such as energy, mining, and industrials, drew investor interest as a defensive haven amid the wave of volatility. Shares of major blue-chip companies posted gains—oil firms BP and Shell rose 3.4% and 2.8% respectively, supported by a rebound in crude oil prices above $90 a barrel due to recent Middle East tensions, including joint strikes by Saudi Arabia and the U.S. against Iran. Other notable performers included engineering group Weir, software company Sage, and consumer goods firm Reckitt.

Analysts point to the FTSE 100’s appeal as a market composed largely of companies with tangible cash flows, reliable dividends, and stable pricing power, attributes that are attracting investors moving away from more speculative technology stocks. Susannah Streeter, chief investment strategist at Wealth Club, noted that the index’s defensive qualities have helped it “find its mojo” despite ongoing geopolitical risks. Neil Birrell, chief investment officer at Premier Miton, described the UK market as “boring” compared to peers but valued for its quality companies trading at comparatively attractive valuations.

The recent rally also follows a challenging first half of the year for the FTSE 100, which fell below 10,000 in March amid escalating tensions following former U.S. President Donald Trump’s war with Iran. Since then, the index has recovered steadily, now flirting with the 11,000 mark.

However, the FTSE 100 has faced pressure from takeover activity, with several constituents acquired by foreign investors attracted by their relatively low valuations. This year, five FTSE 100 companies, including energy group DCC, insurance firm Beazley, asset manager Schroders, and data center operator Segro, have accepted buyout offers.

Overall, the FTSE 100’s record high comes amid a global shift in investor sentiment, as concerns over a potential AI-driven tech bubble prompt capital to flow towards more defensible and traditional sectors found in London’s benchmark index.