European stocks extended losses on Wednesday, with the STOXX 50 dropping 0.7% and the STOXX 600 down 0.4%, following a 0.4% decline in the previous session. The market tracked a generally cautious mood across the region as investors weighed elevated valuations in AI-related and technology shares against a new batch of mixed corporate earnings. The tech sector was under heavy pressure, with ASML slumping 2.7%. Also, LVMH lost 1.5%, Siemens Energy fell 2.9% while Ambu plunged 13.5% to lead losses on the STOXX 600 after reporting disappointing results. BMW traded near the flatline despite reporting an improved profit margin. On the other hand, Novo Nordisk gained 2.1%, even after the drugmaker trimmed its growth outlook for its Ozempic obesity and diabetes treatments. Vestas surged more than 11% to lead gains on the STOXX 600 after reporting better-than-expected earnings and revenue and announcing a €150 million share buyback program.