Due to market concerns about the Democratic Party's sweeping victory in Congress and its impact on AI transactions, global stock markets experienced declines, with increased volatility. European stock markets erased most of their gains from this week.

As of the close, the Stoxx Europe 600 index fell by 1%. However, this decline is much smaller than the 4.4% drop of the S&P 500 index on Thursday, and also far less than the 6.4% plummet of the Nasdaq 100 index, which has a higher weight of technology stocks, marking its worst single-day performance since March 2020. By the time of European market closure, these two U.S. stock indices had risen by about 0.9% and 1.9%, respectively.

On Friday, most sectors in Europe declined, with only the tourism and leisure sector performing well and recording gains. As U.S. stock index futures rose, the Stoxx 600 index narrowed its decline, although strong U.S. economic data reinforced market speculation about a Fed interest rate hike next month.

This week, global markets experienced severe fluctuations, and investors quickly withdrew from AI trading, turning to more defensive assets instead.

MPPM Trading Director Guillermo Hernandez Sampere stated: "Asset reallocation is expected, and high volatility may continue for a few more days, but at present, the risk of a long-term adjustment is not considered very high."

In terms of individual stocks in the stock market, Teleperformance SE fell by 15%, after the company previously lowered its annual sales growth forecast. Glanbia Plc fell by 8.5%, and Morgan Stanley downgraded the rating of this Irish nutritional products manufacturer to underweight.

Panmure Liberum Strategist Joachim Klement said, "The market is telling us that investors are feeling tired, and there aren't many new buyers entering the AI trades." He added, "This clearly has a bearish impact on the tech sector as well as the overall market."

Despite the decline on Friday, European stock markets are becoming one of the most attractive markets at present. Given the volatile technology sector, stable industrial enterprises, banks, defensive leading companies in the European market, as well as a large number of commodity companies, are considered quite attractive.