European Shares Set To Follow Wall Street Lower On Tech Valuation Concerns

(RTTNews) - European stocks may open lower on Wednesday as investors fret about a weakening U.S. economy and highly elevated valuations for many artificial intelligence companies.

As the U.S. government shutdown beats record set during President Trump's first term, traders await payroll processor ADP's report on private sector employment as well a report on U.S. service sector activity later in the day for more insights into the economic and rate outlook.

After the closing bell, shares of Advanced Micro Devices fell nearly 4 percent despite the chipmaker posting record Q3 2025 earnings.

Asian markets followed Wall Street lower, with benchmark indexes in Japan and South Korea plunging around 3 percent on concerns over stretched tech valuations.

Gold rebounded and was up more than 1 percent after the biggest drop in more than a week.

Oil was little changed after falling in the overnight New York trading session as industry data pointed to rising U.S. crude inventories.

The euro was little changed after hitting a three-month low following five straight days of declines.

Yields on U.K. gilts fell, and the British pound held near its lowest level versus the dollar in nearly seven months after Chancellor Rachel Reeves gave a speech on the budget, preparing the public for further tax rises in this month's Budget.

The Bank of England's monetary policy announcement is due on Thursday, with the central bank widely expected to hold interest rate at 4 percent.

U.S. stocks ended lower overnight, the dollar climbed to a four-month high against the euro and Treasuries rose after the CEOs of Goldman Sachs and Morgan Stanley cautioned investors about possible bubble in equities, adding to jitters over highly elevated valuations for many artificial intelligence companies.

The tech-heavy Nasdaq Composite tumbled 2 percent, the S&P 500 gave up 1.2 percent and the Dow declined half a percent.

European stocks ended firmly in the red on Tuesday as a recent tech-fueled rally faded and three top Federal Reserve officials pushed back against expectations of another interest rate cut in December.

The pan-European Stoxx 600 slid 0.3 percent. The German DAX shed 0.8 percent and France's CAC 40 dipped half a percent while the U.K.'s FTSE 100 edged up 0.1 percent.

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