European Shares Tumble Amid Tech Sector Concerns

European shares dropped to a one-week low, influenced by tech sector concerns and expectations of no immediate rate cut by the U.S. Federal Reserve. The STOXX 600 fell 1.1%, with major markets like Germany and France also declining. All eyes are on Nvidia's upcoming results amid AI market anxieties.

European shares plummeted on Monday, reaching a one-week low as worries about an overvalued tech sector and reduced hopes for an immediate rate cut by the U.S. Federal Reserve led to a risk-off mood across global markets.

The pan-European STOXX 600 index dropped 1.1% to 565.4 points, marking its lowest level since November 7. Notably, Germany and France's markets each fell over 1.2%. The decline was especially pronounced in European banking stocks, which slid over 2% each.

Global investor sentiment remains fragile, with Wednesday's awaited Nvidia results acting as a potential turning point during rising fears of an AI bubble. European AI equipment makers like Siemens Energy, Schneider Electric, and ABB all saw substantial stock drops. Meanwhile, anticipation for the delayed U.S. jobs report has fueled caution, despite Roche Holding's nearly 6% surge thanks to successful cancer drug trials.

(With inputs from agencies.)