NEW YORK, United States — European stocks fell on Tuesday on renewed fears over the looming French election, while Wall Street ended mixed after investor darling Nvidia reversed course and the Nasdaq rose.
On Wall Street, the tech-heavy Nasdaq and the broad S&P 500 index rebounded, but the Dow Jones Industrial Average fell.
In Europe, Paris, London and Frankfurt all ended lower.
Nvidia had fallen sharply in recent days on concerns that the tech sector’s rally had gone too far, but it rallied again on Tuesday, closing up 6.8%.
The US company last week became briefly the world’s largest listed company with a market capitalization of more than $3.3 trillion.
The sell-off in Nvidia shares “is not fundamentally driven,” said Kathleen Brooks, director of research at the XTB trading platform. “The company is still expected to make huge profits this quarter.”
Read: Nvidia becomes world’s most valuable company on the stock market
All eyes are now on Friday’s release of personal consumption expenditures, or PCE, the Fed’s go-to inflation gauge, as traders hope for a further slowdown that would give policymakers room to start easing policy.
“Fundamentally all the attention is on inflation,” Peter Cardillo, chief economist at Spartan Capital Securities, told AFP.
“Political uncertainty”
All eyes in Europe are on France’s general election on Sunday, with a second round of voting due to take place on July 7.
President Emmanuel Macron called for early parliamentary elections following his centre-right party’s crushing defeat at the hands of the far-right Rally for Europe (RN) in European Parliament elections two weeks ago.
Read: French shares drop in European markets on vote concerns
Some opinion polls show the RN in the lead, the Left Coalition in second and Macron’s centrist party in third, but the euro remains popular.
“The latest French opinion polls show the far-right Rally National party widening its lead ahead of the first round of voting on Sunday,” said Fiona Cincotta, analyst at City Index.
“Meanwhile, President Macron’s party is in third place,” she added. “Political uncertainty is deepening, which could limit the euro’s rise.”
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Airbus shares listed on both the Frankfurt and Paris stock exchanges plunged about 9.5 percent after the company announced charges of 900 million euros, said supply chain problems would mean fewer aircraft deliveries than expected this year and cut its profit forecast.
