European equity markets extended their record run on Thursday, with the STOXX 600 advancing 0.3% to 665.38 points and Germany’s DAX climbing 1% to an all-time high. The gains were driven by strong corporate earnings and lower energy costs, with Siemens rising 3.8% after lifting its medium-term revenue growth target to 7%–11% and reporting a 22% increase in fourth-quarter industrial profit to €3.89 billion. Merck KGaA added 1.6% after raising its 2026 core earnings forecast for the third time this year to €6.2 billion–€6.4 billion.
LSEG estimates suggested STOXX 600 companies were heading for 25% third-quarter earnings growth, the strongest in four years, although excluding the energy sector that figure fell to about 9.5%. Deutsche Bank put the headline growth estimate at 28%. Brent crude traded around $93 a barrel, easing input costs for European importers and manufacturers, while Citi strategists upgraded European equities excluding the UK to overweight.
In the United States, the Nasdaq Composite opened 0.58% lower and the S&P 500 fell 0.33% after Nvidia shares dropped more than 8% following the resignation of CEO Jensen Huang. The company named CFO Colette Kress as interim CEO. The leadership change came after reports about Huang’s alleged relationships, including one involving a businesswoman accused of being a Chinese spy. If the losses held, Nvidia could lose nearly $400 billion in market value, threatening its position as the world’s second-most valuable publicly listed company.
Selling pressure spread across AI-related equities, with Oracle down 2% and Nebius falling more than 16% despite reporting third-quarter revenue above expectations. However, Advanced Micro Devices gained more than 3% and Broadcom rose over 5% as investors rotated into other semiconductor names. Oil prices edged higher after President Donald Trump said the US no longer needed an agreement with Iran, while initial jobless claims rose by 9,000 to 200,000, slightly above consensus estimates of 195,000.
For digital asset markets, the day’s action reinforced a cautious risk backdrop. Scrutiny of expensive AI investments and mixed signals from equities could temper speculative appetite in AI-linked crypto sectors, while lower energy costs and record European stocks may provide some offsetting support for broader risk sentiment.
