European Markets Slide as Fresh AI Concerns Shake Global Investor Confidence
European markets are poised for a weak start on Tuesday as global investors pull back amid renewed anxiety surrounding artificial intelligence–linked stocks. The cautious mood comes after a turbulent session on Wall Street, where concerns about the sustainability of the AI-driven rally resurfaced sharply. Early projections suggest a broadly negative open across major European indices.
London’s FTSE 100 is expected to fall by around 1.1%, while Germany’s DAX and France’s CAC 40 are each set to slide roughly 1.3%. Italy’s FTSE MIB is also seen opening 1.27% lower, according to figures from IG Group. The downbeat sentiment reflects Wall Street’s poor performance on Monday, when tech losses dragged the Dow Jones Industrial Average down more than 550 points, and both the S&P 500 and Nasdaq also closed in the red.
Investors in the United States are turning their attention to delayed jobs data scheduled for release later in the week, alongside heightened anticipation surrounding Nvidia’s upcoming earnings report. The chipmaking giant, whose stock dipped 2% on Monday, remains central to the debate over whether the AI boom can maintain its momentum after powering much of this year’s market gains.
Market watchers are increasingly uneasy about weakening market breadth, lofty tech valuations, and questions over the fundamentals supporting the AI surge. Analysts have pointed to the rising wave of Big Tech debt issuance and the fast depreciation cycle of AI chips as signs that the sector may be heating up too quickly. The uncertainty has weighed on Asia-Pacific markets as well, which closed lower overnight.
In Europe, investors will also be digesting earnings from Siemens Energy and Imperial Brands on Tuesday. With no major economic data releases scheduled for the region, sentiment is likely to follow global cues. For now, traders remain focused on the tech sector’s next moves — and whether the AI-driven rally can regain steam or faces a deeper correction.
source: cnbc