European stocks closed firmly lower on Tuesday, tracking losses across bourses across the world as lingering concerns of exaggerated valuations for major tech companies hampered global risk sentiment. The STOXX 50 dropped 0.4% to 5,660 and the STOXX 600 fell 0.4% to 570. ASML, SAP, Adyen, and Nokia fell between 1.5% and 3.1%, leading the losses for tech shares amid growing concerns that the soaring levels of AI and datacenter capital expenditures will not result in the revenue levels pledged. In the meantime, AB Foods fell nearly 3% after delivering earnings and announcing it might sperate its Primark retail arm from its foods businesses. On the other hand, Ferrari closed 3.3% higher after beating third-quarter profit expectations and reaffirming its guidance for this year. Also, Philips advanced 3% on stronger revenue and optimistic measures to mitigate tariffs by the US.