European stock markets plunge amid concerns over an “AI bubble” and soaring technology valuations

Widespread losses led by bank stocks

The pan-European STOXX 600 index fell 1.1% to 565.4 points at 08:09 GMT (10:09 Greek time). Major regional stock exchanges also suffered sharp losses, with both Germany and France’s bourses dropping by more than 1.2%.

European bank stocks were the most negative and pressured factor on the index, falling by more than 2%.

Technology and artificial intelligence under pressure

Global investor sentiment remains fragile, especially with high expectations for Nvidia’s outstanding performance scheduled for Wednesday, which has fueled fears of an “AI bubble”.

In Europe, shares of major technology equipment manufacturers were affected, with Siemens Energy shares falling by 3% and Schneider Electric shares declining by 2%.

ABB shares fell 4% after the company disappointed investors by confirming its revenue growth forecast instead of raising it.

Warning ahead of US jobs report

Traders also remain cautious ahead of the delayed US jobs report due on Thursday. While private surveys have pointed to a weak labor market, hawkish comments from most Federal Reserve officials have dampened expectations of an interest rate cut in December.

bright spot

In contrast, shares of the Swiss pharmaceutical company Roche Holding recorded a significant increase, rising by nearly 6%, after announcing the positive final trial results for its new breast cancer treatment drug, Gridstrant.