From Morningstar: 2024-09-11 11:26:00

Last Wednesday’s market sell-off was the worst since August 5th, with chipmakers like Nvidia leading the decline. Arm Holdings and ASML are both down 10% in the last week. European stocks are trading at a 6% discount to fair value, with some sectors slightly overvalued. Economists expect rate cuts due to improved GDP growth and falling inflation rates in the UK and Eurozone. The tech rout in the US is unlikely to lead to market contagion in Europe, as European tech stocks are not overvalued. Most large European tech companies are trading around fair value estimates. Markets may be sentiment-driven in the short term, but longer-term investors should consider staying invested with the current economic conditions.



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