The pan-European Stoxx 600 index ended up 0.23% at 571.9 points

European shares recovered towards the end to close higher on Wednesday, after dropping earlier in the session when a selloff in technology stocks weighed on markets, while investors assessed corporate earnings.

The pan-European Stoxx 600 index ended up 0.23% at 571.9 points. It had dropped 0.7% earlier in the session. Other major regional indexes also traded higher.

Technology stocks, the top sectoral losers earlier in the day, pared dropped 0.1%.

European markets are piggy-backing on the US today, with an upbeat mood following the positive job numbers, said Michael Field, chief equity strategist at Morningstar.

Risks of an AI bubble may yet come to bite us, but not this week – investors are in a buoyant mood, he added.

The healthcare stock index dropped 1%. Novo Nordisk shares declined 4.5% after it cut its full-year forecasts.

Ambu, down 15.8%, plunged to the bottom of the Stoxx 600, after the Danish endoscopy solutions maker reported quarterly results below consensus.

Siemens Healthineers plunged 8.6% after it reported fourth-quarter sales below analysts’ consensus and issued an earnings outlook that disappointed investors.

Meanwhile, the auto and parts sector, which has logged big losses so far this year, added 2.3%. BMW gained 6.8% after its core profit margin increased in the third quarter.

Mercedes-Benz, Renault, and Volkswagen added between 2.3% and 3.5%.

Energy stocks rose 0.9%. Vestas gained 14.7% to top the benchmark index after reporting third-quarter operating profit above expectations and saying it would launch a share buyback programme.

Valuation fears resurfaced this week on the U.S. stock market and in Asia that have had record-breaking runs this year, driven primarily by enthusiasm for artificial intelligence.