European markets weakened by Wall Street volatility

In Paris, the CAC 40 edged up slightly by 0.34%, reaching 8,205.37 points. In contrast, Frankfurt’s DAX index fell by 0.41%, while the FTSE 100 in London lost 0.43%. The EuroStoxx 50 recorded a decline of 0.61%, the FTSEurofirst 300 by 0.41% and the Stoxx 600 by 0.45%.

At European close, the Dow Jones was down 2.40%, the Standard & Poor’s 500 by 3.18% and the Nasdaq Composite by 4.31%, after an initial drop exceeding 5%. The Nasdaq 100, a key indicator of the technology sector, could lose more than $1.8 trillion in market capitalization for the day, as investors fear that recent elections may hinder the development of AI infrastructure.

Companies specializing in AI-related chips and cloud services were particularly affected, leading to a 9% drop in the Philadelphia semiconductor index. Nvidia and Broadcom recorded losses of more than 6% each. Disappointing financial results from Qualcomm, whose stock fell by 11% due to chip sales falling short of forecasts, added to the pressure.

Analysts at UBS estimate that approximately 30% of the planned increase in US data center capacity by 2028 could be jeopardized by potential construction shutdowns. Mark Hackett, market strategist at Nationwide, commented: “This is a volatile and cyclical sector, and when sentiment changes, the reactions are sharp.”

Despite limited influence in Europe, American turbulence affected the Old Continent, leading to a 3.28% drop in the Stoxx 600 sector compartment. Investors also analyzed the decision by the Bank of England (BoE) to raise its key interest rate to 4%, the first increase in three years, and its warning regarding a potential further increase linked to the conflict between the United States and Iran.

Air France-KLM rose by 12%, benefiting from strong quarterly results and the positive performance of the airline industry. Siltronic, ASML and Soitec shares, on the other hand, lost between 6% and 16% due to concerns related to AI. ArcelorMittal finished down by 1.12% after erasing initial gains. Rheinmetall plunged by 16% following a downward revision of its 2026 revenue forecast.

News regarding the US labor market, with unemployment claims at their lowest level in 57 years (189,000), and data on producer prices in the Eurozone (in line with expectations) were also published. In France, industrial production unexpectedly fell by 0.5% in September.

Yields on sovereign bonds retreated as investors turned to safe-haven assets. The yield on ten-year Treasuries fell 5.1 basis points to 4.8408%, while that of the German Bund ten-year fell 4 basis points to 3.2455%. The oil market registered a rebound after a decline the previous day.