European stock markets opened slightly weaker on Wednesday as investors awaited quarterly earnings from NVIDIA Corporation (NASDAQ:NVDA), with the results expected to provide further insight into the strength of the global artificial intelligence boom.
At 07:00 GMT, the STOXX Europe 600 was down 0.1%, while Germany’s DAX fell 0.4%. France’s CAC 40 declined 0.3% and the UK’s FTSE 100 slipped 0.4%.
Nvidia results in focus amid AI spending boom
Nvidia, regarded as a leading supplier of advanced AI semiconductors and one of the world’s most valuable technology companies, is scheduled to release quarterly earnings after the close of trading on Wall Street later in the day.
The company’s rapid growth in recent years has been fuelled by substantial investment from major technology firms seeking to expand infrastructure supporting artificial intelligence models.
As a result, Nvidia’s earnings have become a closely watched indicator for investors assessing the outlook for the rapidly expanding AI sector.
The upcoming figures also arrive at a time when AI-related capital spending has helped sustain economic activity while global markets continue to deal with the economic consequences of the conflict involving Iran.
Inflation fears tied to Middle East tensions
Analysts have warned that the military campaign launched more than two months ago by the United States and Israel against Iran could trigger another wave of inflationary pressure capable of slowing global economic growth.
A major factor remains the ongoing closure of the Strait of Hormuz, the strategically important shipping route off Iran’s southern coast through which around 20% of global oil supplies normally pass.
Markets were also awaiting the release of the final April consumer price index data for the eurozone, while inflation figures published in the UK showed easing price pressures.
Bond yields weigh on sentiment
With concerns mounting over a possible resurgence in inflation, investors are increasingly betting that the European Central Bank and other major central banks may need to raise interest rates further.
Recent increases in government bond yields have added pressure on equity markets and weakened broader investor sentiment.
At the same time, hopes remain that negotiations between the United States and Iran — currently stalled despite an extended ceasefire — could eventually lead to a diplomatic resolution that reopens the Strait of Hormuz.
Shipping data on Wednesday indicated that two Chinese oil tankers had successfully exited the waterway.
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