European equities fell sharply, mirroring Wall Street’s tech-led selloff as investors questioned the durability of artificial-intelligence premiums ahead of Nvidia’s earnings.

At 08:05 GMT, Germany’s DAX and France’s CAC 40 each slid 1.3%, while the U.K.’s FTSE 100 dropped 1.0%.

AI exuberance under scrutiny

A renewed reassessment of AI-driven multiples weighed on global risk appetite after U.S. benchmarks retreated Monday, with the Dow off more than 500 points (-1.2%) and both the S&P 500 and Nasdaq Composite lower. Alphabet CEO Sundar Pichai warned in a BBC interview that a bursting of an AI bubble would have economy-wide repercussions—remarks that fed into the risk reset.
All eyes now turn to Nvidia (NASDAQ: NVDA) on Wednesday, a bellwether for AI infrastructure spending and a litmus test for whether earnings momentum can sustain a three-year valuation surge.

U.S. data calendar restarts; rate path in play

With Washington’s shutdown over, delayed releases begin to reappear. Factory orders (Aug.) are due later Tuesday, but the marquee print is September nonfarm payrolls on Thursday, the final major labor datapoint before the Dec. 10–11 Fed meeting.
Fed Governor Christopher Waller on Monday flagged labor-market risks and argued for another 25 bp cut in December, even as market-implied odds for such a move have drifted down to ~40% from ~55% a week earlier.

Movers in Europe

• Imperial Brands (LON: IMB): Adjusted operating profit rose nearly 5%, supported by pricing and next-gen products.
• Crest Nicholson (LON: CRST): Guided FY profit to the low end or marginally below its prior range amid a subdued summer market and budget-related uncertainty.
• Akzo Nobel (AS: AKZO) / Axalta (NYSE: AXTA): Announced plans to merge, targeting a combined $25bn enterprise value, consolidating coatings scale across autos and industrials.

Oil gives back risk premium

Crude pulled lower as supply fears faded. Brent Jan fell 0.9% to $63.64/bbl and WTI lost 1.0% to $59.29/bbl after Russia’s Novorossiysk port resumed loadings following a two-day shutdown from Ukrainian strikes. Novorossiysk and the nearby CPC terminal together handle roughly 2.2 mb/d (~2% of global supply). The restart tempers immediate disruption, though infrastructure risk remains elevated.

The takeaway

A fragile tape faces a binary week: Nvidia’s delivery and guidance versus a re-awakening U.S. data cycle. A convincing AI earnings print and softer payrolls could steady risk; any disappointment or resilient labor strength may extend the de-rating in richly priced tech and keep European indices on the defensive.