European stocks slide as AI trade wobbles and weekly gains disappear

What moved markets this week

Worries about a Democratic sweep in Washington and its potential impact on the AI trade pushed investors to shuffle positions, raising volatility across global equities. That reset hit the US hardest on Thursday, when the S&P 500 slid 4.4% and the Nasdaq 100 dropped 6.4%, its steepest one day loss since March 2020.

How Europe reacted

European stocks gave back their weekly advance as the Stoxx Europe 600 slipped 1.7% by 1:56 p.m. in London. Losses were broad, though travel and leisure outperformed and stayed positive. The index held lower after October US data showed hiring picked up and the jobless rate ticked down, reinforcing signs of an expanding economy. Later in the day, there were hints of a steadier US open, with S&P 500 futures nudging up and Nasdaq 100 contracts rising more than 1%.

Big movers and market views

Teleperformance SE sank as much as 22%, the sharpest drop since March 2024, after it cut its outlook for revenue growth for the entire year. Shares of Glanbia Plc dropped 8% following a downgrade to underweight by Morgan Stanley. Wild swings have been the norm this week as money moved out of the AI trade and into more defensive areas. "Reallocations are to be expected, and high volatility will likely persist for a few days, however, the risk of a prolonged correction is not yet considered very high," according to Guillermo Hernandez Sampere, who serves as head of trading at MPPM.

Market swings remind investors that thoughtful tools can help sustain a long term edge. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

What it means for your portfolio

Even with Friday's drop, Europe is drawing fresh interest as a relative value play. A mix of steady industrials, banks, defensive names and commodities companies looks appealing while tech stays jumpy. Euronext NV Chief Executive Officer Stephane Boujnah put it plainly: "Europe is the place to invest in these troubled times," and "Europe is a very safe place when it comes to return risk profile."

Using new analytical tools thoughtfully can give investors a clearer perspective over time. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.