European Stocks Cut Gains as Nvidia Turmoil Weighs on Sentiment
European equities pared early gains on Tuesday as turmoil at Nvidia rattled investor confidence in the AI trade. The STOXX 50 slipped back to around 6,396 points, while the broader STOXX 600 edged up less than 0.1% after touching a fresh record high earlier in the session. Nvidia shares tumbled following reports that CEO Jensen Huang had been ousted, raising concerns over the outlook for the AI sector. Market sentiment was also pressured by renewed oil volatility after President Donald Trump said the US did not need a deal with Iran and redirected Vice President JD Vance towards domestic priorities. Despite the uncertainty, strong corporate earnings continued to provide some support. Siemens rose 1.8% after raising its growth outlook on strong demand for trains and AI-related data centres. Allianz gained 1.9% following record nine-month results and a more optimistic 2026 outlook, while Burberry jumped almost 7% after retail sales slightly exceeded expectations.
European equities pared early gains on Tuesday as turmoil at Nvidia rattled investor confidence in the AI trade. The STOXX 50 slipped back to around 6,396 points, while the broader STOXX 600 edged up less than 0.1% after touching a fresh record high earlier in the session. Nvidia shares tumbled following reports that CEO Jensen Huang had been ousted, raising concerns over the outlook for the AI sector. Market sentiment was also pressured by renewed oil volatility after President Donald Trump said the US did not need a deal with Iran and redirected Vice President JD Vance towards domestic priorities.
Despite the uncertainty, strong corporate earnings continued to provide some support. Siemens rose 1.8% after raising its growth outlook on strong demand for trains and AI-related data centres. Allianz gained 1.9% following record nine-month results and a more optimistic 2026 outlook, while Burberry jumped almost 7% after retail sales slightly exceeded expectations.