LONDON — European shares slipped to a two-week low on Wednesday, weighed down by technology stocks and renewed investor caution over high market valuations worldwide. Meanwhile, a weaker outlook from Novo Nordisk added to the downbeat tone.

The pan-European STOXX 600 index (.STOXX) fell 0.4% to 568.10 as of 08:11 GMT, marking its second consecutive session at the lowest level since October 17.

Technology shares (.SX8P) led the declines with a 1.3% drop, while traditionally defensive sectors such as food and beverage stocks (.SX3P) edged slightly higher.

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Valuation Jitters and Global Market Pressure

Concerns over lofty equity valuations resurfaced this week across Wall Street and Asian markets, both of which have experienced record gains this year, largely fuelled by the ongoing boom in artificial intelligence (AI) stocks.
Comments from major U.S. banks on Tuesday heightened fears that markets may have overheated, prompting a broader risk-off sentiment among investors.

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Earnings Updates Drive Stock Moves

Corporate earnings also remained a key focus across Europe.

Novo Nordisk (<NOVOb.CO>) shares fell 2% in volatile trading after the company cut its full-year profit forecast, marking an early challenge for its new CEO. The downgrade comes as the Danish drugmaker undergoes a major restructuring effort to stay competitive in the rapidly evolving obesity drug market.

Ambu (<AMBUb.CO>), a Danish endoscopy equipment maker, plunged 12% after posting results below market expectations.

In contrast, Vestas Wind Systems (<VWS.CO>) delivered some relief to the market. The wind turbine manufacturer beat third-quarter profit forecasts, lifting its shares 10%.

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U.S. Markets Mirror the Decline

Across the Atlantic, U.S. stocks closed sharply lower on Tuesday, with the Dow Jones Industrial Average down more than 0.5% and the S&P 500 shedding over 1%, reflecting similar global investor unease.