European Stocks Dip to Two-Week Low as Tech Sector Falters
LONDON – European stocks experienced a broad decline Wednesday, hitting a two-week low amid renewed investor apprehension regarding elevated valuations and a pullback in technology shares. The European stoxx 600 index closed down 0.4 percent at 568.10 points as of 08:11 GMT,marking the second consecutive session at levels not seen since October 17,according to Reuters.
The downturn reflects growing concerns following record highs earlier in the year, fueled by optimism surrounding artificial intelligence. These anxieties were amplified by recent commentary from major U.S. banks and a focus on corporate earnings reports across Europe. The slide underscores a broader market sensitivity to valuation levels and potential headwinds for growth,impacting investors across the continent and signaling a possible shift in market sentiment.
Technology stocks bore the brunt of the selling pressure, declining 1.3 percent. Conversely, defensive sectors like food and beverages saw modest gains. Novo Nordisk shares fell 2 percent following a revised, lower full-year profit forecast, a challenge for the company’s new CEO amidst restructuring efforts related to its obesity drug market.
Danish endoscopic solutions firm Ambo also saw a significant drop, with its stock falling 12 percent after reporting quarterly results below expectations. Though, Vestas, a wind turbine manufacturer, bucked the trend, reporting third-quarter operating profits exceeding forecasts and boosting its share price by 10 percent.
