Global stock markets opened lower, with Wall Street indices falling amid risk aversion over geopolitical tensions in the Middle East. Investors also doubted the profits that AI companies could generate.
The S&P 500 declined 1.31 percent and the Dow Jones lost 0.34 percent.
Europe follows Wall Street lower
European exchanges also fell broadly. Italy’s FTSE MIB dropped 2.29 percent and Spain’s IBEX 35 lost 1.88 percent.
London’s FTSE 100 slipped 0.23 percent.
Earnings and risk appetite
Analysts at Bx+ said risk appetite is expected to stay moderate. Several technology company earnings reports failed to meet consensus expectations, and investors worry about escalating tensions in the Middle East.
Operators are increasingly demanding about AI, Bx+ said. The market rewards large investments but is more demanding about profitability.
Related: Asian stocks open lower as AI debt worries linger · Wall Street rises as tech shares recover from sell-off
