Trading opened lower across major European stock markets after US September inflation came in above expectations and renewed worries about the financing of artificial intelligence (AI) companies triggered a global sell-off in technology shares. Those developments put particular pressure on stocks tied to semiconductors, data centers and AI infrastructure.
The pan-European STOXX 600 index began the day down 0.39 percent, while the euro-area Euro Stoxx 50 fell 1.04 percent. In London the FTSE 100 opened 0.05 percent lower. Frankfurt’s DAX declined 0.61 percent and Paris’s CAC 40 was down 0.20 percent. Milan’s FTSE MIB slipped 0.98 percent and Madrid’s IBEX 35 was 0.19 percent below the previous close.
Investors focused on technology and AI-linked companies, driving a broad sell-off. Markets fear that the stronger-than-expected US inflation print could lead the Federal Reserve to keep interest rates higher for longer, increasing financing costs for growth and technology firms.
Ahead of the European open, Asian markets suffered heavy losses. South Korea’s Kospi fell by more than seven percent, driven largely by steep share price drops at Samsung Electronics and SK Hynix. Japan’s Nikkei 225 closed nearly five percent lower, marking the index’s third-largest one-day decline on record. Significant selling pressure and large index losses were also seen in Taiwan, Hong Kong and mainland China.
On the corporate front, Ericsson received a positive reaction to its quarterly results, reporting better-than-expected performance thanks to strong demand for mobile network equipment. Pernod Ricard posted a smaller-than-expected drop in sales, helped by the Indian market offsetting weaker demand in the US and China. By contrast, Nordea Bank’s results missed analyst expectations.
Commodities showed a corrective move among energy products: US WTI crude oil traded at $94.19 per barrel, down 0.95 percent, while North Sea Brent fell to $104.55, a 1.42 percent decline. European natural gas was quoted at €85.44 per megawatt-hour, down 1.95 percent. Markets continued to monitor security risks in the Strait of Hormuz and the potential for supply disruptions.
Precious metals saw gold rise, with spot gold reaching $4,134.79 per ounce, up 0.72 percent from the previous session — supported by rising risk aversion and lower US bond yields.
On the foreign exchange front the US dollar weakened: the dollar index eased to 102.15, a 0.39 percent decline. The euro strengthened against the dollar to 1.1206, up 0.48 percent from the prior quote.
Overall, the combination of a hotter inflation print in the United States and renewed doubts about the sustainability of high valuations and debt loads in AI-related investments under a higher-rate environment has prompted investors to reprice risks, with especially sharp moves in technology and semiconductor-linked equities.
Why this matters
Given the scale of capital flowing into AI and the global importance of the technology sector, changes in financing conditions and interest rate expectations can have wide effects on equity markets and growth prospects. The market reaction underscores that investors are reassessing lofty AI valuations in light of the prospect of prolonged higher interest rates.
