European markets opened significantly lower on Friday, following a retreat in Asian shares in the morning and Wall Street’s tumble on Thursday, as investors reassessed the outlook for interest-rate cuts and questioned the lofty valuations of leading US technology and AI stocks.
“Markets are down across the board as investors fret about cracks in the narrative that’s driven the mother of all tech rallies over the past few years," said Dan Coatsworth, head of markets at AJ Bell. The key concern is "about rich equity valuations and how billions of dollars are being spent on AI just at a time when the jobs market is looking fragile", he added.
