The FTSE 100 defied the sea of red that swept across global tech stocks after China’s DeepSeek AI app wiped billions from microchip giants like Nvidia.

The main market was up 0.35%, or 29 points, at 8,533 as it survived the rout in the technology sector that saw the Nasdaq Composite lose 3% and the S&P 500 close down 1.5% overnight. Nvidia lost $600bn (£482bn) in value, as the shares dived 17%, representing the biggest ever loss for a stock in one day.

Semiconductor stocks bore the brunt of the falls, with US-listed Broadcom and Micron falling, while outside the US, Taiwan Semiconductor Manufacturing and Dutch semiconductor equipment maker ASML, both shed value.

Derren Nathan, head of equity research at Hargreaves Lansdown, said the blue chips’ defensive tilt proved beneficial. Non-cyclical consumer stocks, such as Unilever (ULVR) and British American Tobacco (BATS), kept the index steady alongside bigger pharmaceutical names.

The emergence of DeepSeek’s new AI model, which was reported to have been developed on a shoestring budget of $6m, has caused concerns about the outlook for spending in the sector.

DeepSeek was also named as the most downloaded free app in the US just a week after it was launched.

However, Nathan said ‘that only tells one side of the story’.

‘For those looking to integrate AI into their business models, the prospect of lower development costs could seriously boost returns on investment,’ he said.

‘Salesforce chief executive Mac Benioff’s comments on social media that: “data is the new gold” helped propel the shares up by 4%. And within the Magnificent Seven, Apple, Meta and Amazon were all in the green.’

US president Donald Trump described DeepSeek’s newfound popularity as a ‘wake up call’ for the US tech industry.

Scottish Mortgage (SMT) which tumbled alongside its US-focused investment trust peers yesterday gained some ground today, up 1.3% at £10.18. JPMorgan American (JAM) was up 1.3% at £11.64, Allianz Technology (ATT) added 0.8% to 425p, and Polar Capital Technology (PCT) was up 0.4% at 358p. Meanwhile, Baillie Gifford US Growth (USA) added 0.1% to hit 258p and Edinburgh Worldwide (EWI) was flat at 189p, following steep falls across the board.

Rentokil (RTO) was the biggest riser amongst the blue chips, up 4.3%, or 16p, at 403p after the pest control expert reported 3% organic revenue growth in the four quarter, putting it on track to meet guidance. This coincided with an executive reshuffle, as the departure of the company’s US boss was confirmed.

The FTSE 250 climbed 0.68%, or 139 points, to 20,508 led higher by Irn-Bru maker AG Barr (BAG), which jumped 5.4%, or 32p, to 615p after it reported another year of strong top line growth. The company expects revenue of £420m in 2024-25, up 5% year-on-year.

Pets at Home (PETS) gained 4.5%, or 9p, reaching 220p. It kept full-year profit forecasts after a tough third quarter that saw revenues slip on subdued consumer demand.