European stock market sell-off loses steam as shares close higher ahead of Nvidia earnings
European equities closed broadly higher on Wednesday, after days of being ravaged by lingering doubts over tech stocks.
The pan-European Stoxx 600 pared earlier losses to end the session 0.1% higher, snapping a four-day losing streak. Most major regional bourses were also in positive territory by the end of trading.
Global markets have been on edge this week with concerns over artificial intelligence-related tech stocks and valuations returning to the fore.
Stocks on Wall Street also saw a reversal of fortunes on Wednesday, with the S&P 500 rising after four consecutive days of losses. Investors are preparing themselves for Nvidia’s earnings report, due to be released after the U.S. market close, to inform the strength of the AI trade.
Analysts largely expect Nvidia to meaningfully beat Wall Street’s expectations and forecast strong sales growth, driven by demand for its AI chips and other infrastructure.
But the company has to meet lofty expectations among investors, who have taken profits from their tech holdings in recent days, reflecting heightened concerns that the AI boom has run up the valuations of Nvidia and other tech hyperscalers.
Elsewhere, Europe’s Aerospace and Defense Index hit a two-month low on Wednesday and ended the day around 1.9% in the red, as investors reacted to an Axios report that the U.S. is “secretly” working on a Ukraine-Russia peace plan.
German defense primes Rheinmetall and Renk, two of the biggest beneficiaries of the bull run on European defense stocks this year, lost 7% and 8%, respectively, over the course of Wednesday’s session.
Source: CNBC
