European Stocks Rebound as AI Selloff Hits Wall Street

European stocks rebounded this week on falling bond yields and strong earnings, while Wall Street fell due to an AI-related stock selloff and higher-than-expected U.S. inflation. The Federal Reserve is widely expected to keep rates unchanged this month, though a December hike remains possible. The AI hardware sector suffered heavy losses, with optical equipment makers like Lumentum, Ciena, and Coherent dropping over 25%, while "neocloud" providers CoreWeave and Nebius fell about 25% amid questions about their business models. European natural gas hit its highest level since late 2022 at €86.43/MWh due to low inventories and Middle East supply disruptions. Oil prices rose sharply, with WTI surging 7.5% to $98.40 a barrel, while gold gained modestly to $4,178 an ounce. Bitcoin slipped 1.73% to near $82,000, remaining 35% below its all-time high. Upcoming events include China's Q3 GDP, UK inflation, and earnings from Netflix, Meta, Tesla, and others.