European equities were mixed on Wednesday, with some markets extending their downturn. Germany’s DAX stabilized to a certain extent after suffering a series of declines. Sentiment remained fragile amid renewed concerns over tech valuations and Fed monetary policy uncertainty, with investors positioning cautiously ahead of several key catalysts.
The focus could remain on Nvidia’s earnings report, due after the US close, which is expected to act as a barometer for the broader AI outlook. Strong results could help stabilize markets after a wave of selling, while a miss may exacerbate recent losses and deepen investor concerns around growth expectations.
Adding to the cautious tone, markets are eyeing Wednesday’s FOMC minutes and Thursday’s non-farm payrolls report for clues on the Fed’s next steps. Jobless claims have recently ticked higher, and a weaker-than-expected NFP could reinforce rate-cut expectations for early 2026. Conversely, a strong print may add pressure on equities in the near term.