European Stocks Hit Two-Week Low Amid Tech Selloff and Earnings Woes

European shares fell to a two-week low due to a selloff in technology stocks and mixed earnings reports from major companies, including Novo Nordisk and BMW. The pan-European STOXX 600 index dropped by 0.3%, with technology being the hardest hit sector. Valuation fears resurfaced amid uncertainties in the U.S. economy.

European shares dipped to a two-week low on Wednesday, influenced by a significant selloff in technology stocks, which have been pivotal in recent global worries about equity overvaluation. Investors remained cautious following mixed earnings updates from Novo Nordisk, BMW, and Ambu, among others.

The pan-European STOXX 600 index recorded a 0.3% decline, reaching 568.78 by 0954 GMT, after earlier hitting a 0.7% drop. Technology stocks led the sectoral losses, falling 0.9%, with companies like ASM International and BE Semiconductor down over 2%. Conversely, the auto and parts sector showed resilience, rising 0.8% despite broader economic concerns.

Concerns over valuation resurfaced this week on Wall Street and Asia following record-breaking runs this year, primarily driven by enthusiasm for artificial intelligence technologies. This was exacerbated by remarks from major U.S. banks and a hawkish stance on interest rates by the Federal Reserve amidst an ongoing government shutdown.

(With inputs from agencies.)