European markets close higher, following Wall Street recovery

LONDON — European stocks reversed earlier losses to end Wednesday’s session broadly higher, as regional shares followed their U.S. counterparts into positive territory.

The pan-European Stoxx 600 was provisionally 0.25% higher after the closing bell, paring losses seen earlier in the session.

The lackluster sentiment seen earlier in Europe followed similar moves in U.S. and Asia Pacific markets overnight, as investors appear increasingly concerned about the lofty valuations of AI-related stocks and tech companies, fearing a bubble is forming.

However, Wall Street’s major averages rebounded on Wednesday morning, with some big AI players including Advanced Micro Devices, Oracle and Nvidia posting gains in early New York trade.