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BEFORE THE BELL: BIG TECH DOWN, EUROPE AND WALL ST TOO
A drop in U.S. Big Tech, which began in Asian trading hours despite another strong earnings report - this time from Palantir Technologies, soured global risk sentiment on Tuesday, setting European shares and Wall Street up for a sharply weaker open.
Euro STOXX, DAX and FTSE futures fell between 0.4% and 1.2%, while Nasdaq contracts dropped even more, by down 1.3%. Palantir PLTR.O shares tumbled nearly 6% in Frankfurt, as solid numbers were not enough to extend its record run, while shares in the Magnificent Seven were all in the red.
Investor concerns are mounting over whether Big Tech's massive AI spending will deliver adequate returns. Valuations are sky-high, heightening bubble fears if expectations around AI prove unrealistic.
Meanwhile, the earnings season rolled on, though share price reactions may suffer from the downbeat mood.
Here are a few highlights over the last hour or so:
BP BP.L profit beats expectations, helped by refining margins
Telefonica TEF.MC cuts dividend in two as part of new strategy
AB Foods ABF.L says it could separate Primark and food
Hugo Boss BOSSn.DE expects sales, profit at low end of guidance
Evonik EVKn.DE posts 22% drop in quarterly core profit, but beats market estimates
(Danilo Masoni)
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