European stock markets weakened again during Friday’s trading session (November 6, 2026), as growing concerns regarding the outlook for artificial intelligence (AI) investments—compounded by shifts in United States policy—triggered a sell-off across global equity markets.
The STOXX Europe 600 index closed down 1%, erasing most of the gains made throughout the week. Nevertheless, the pressure in Europe remained more contained than on Wall Street, where the S&P 500 fell by 4.4% and the Nasdaq 100 plummeted by 6.4% on Thursday—the latter marking the technology-heavy index’s steepest daily decline since March 2020.
The downturn affected nearly every sector in the European market, with only the travel and tourism sector managing to remain in positive territory. Negative sentiment was fueled by a shift in investor strategy, as market participants began reducing their exposure to AI-related companies following the Democratic Party’s victory in the U.S. Congress, which heightened uncertainty surrounding technology policy and investment. However, the STOXX 600 managed to pare some of its losses as U.S. stock futures began to recover. Meanwhile, robust U.S. economic data bolstered expectations that the Federal Reserve might raise interest rates in December, further pressuring risk assets.
Market participants are now closely monitoring whether the correction in global technology stocks will persist and how it might impact international capital flows. Guillermo Hernandez Sampere, Head of Trading at MPPM, noted that the rotation of investments between sectors is a natural occurrence amid shifting market sentiment. He anticipates that volatility may persist over the coming days, though the risk of a prolonged correction is not currently considered high. Given these conditions, the future direction of European markets will depend on the stabilization of Wall Street, the outlook for AI investments, and evolving expectations regarding the Federal Reserve’s interest rate policy.
Source: Newsmaker.id