European Shares Tumble Amid Novo Nordisk Slump and AI Uncertainty

European shares experienced a downturn on Wednesday, reflecting a sharp decline in Novo Nordisk's stock following a negative forecast in the highly competitive weight-loss drug sector. The pan-European STOXX 600 index slipped by 0.3%, with a notable decrease in healthcare shares.

Novo Nordisk's shares plummeted 18%, marking their largest single-day drop since July 2025, as the company projected a drop in sales and operating profit for 2026 due to competitive pricing pressures in the U.S. weight-loss drug market.

In addition, the technology and media sectors also faced significant losses, driven by investor concerns over AI developments and upcoming eurozone inflation data. Mixed earnings from major European banks further added to the market's volatility.