AI Fatigue Hits Wall Street: Megacaps Stumble as Market Momentum Fades – Europe Market Wrap

A slide in technology shares dragged global markets lower for a second day as investors continued to pull back from the biggest winners of the artificial-intelligence boom.

Nasdaq 100 futures slipped 0.3% after the index posted its sharpest decline in nearly a month, pressured by concern that valuations in the sector have become stretched. Nvidia led losses among the Magnificent Seven megacaps in premarket trading. Super Micro Computer tumbled on disappointing earnings, while Advanced Micro Devices fell after offering a subdued outlook.

Beyond the tech space, the broader equity retreat showed signs of stabilizing. S&P 500 futures pared losses, and the Russell 2000—a gauge of small-cap stocks—was on track for its first advance this week. In commodities, gold rose for the first time in four sessions, while Bitcoin rebounded above $102,000. US Treasuries and the dollar were little changed ahead of key labor data.

Attention turned to ADP Research’s private payrolls report, which may hold greater sway than usual as the record-long government shutdown limits visibility into official labor statistics. Economists expect a modest rebound in October following two months of declines. With money markets pricing in about a 70% chance of a Federal Reserve rate cut in December, a stronger-than-expected print could prompt traders to recalibrate expectations for policy easing.