European financial markets advanced on Wednesday as technology-related companies helped lift investor sentiment across the region.
The pan-European STOXX 600 index gained approximately 0.3% by midday GMT, approaching its August record.
The recovery followed a period of volatility in artificial intelligence-related shares, with investors reassessing the growth prospects of companies supplying infrastructure for AI development.
Positive sentiment from Asian equity markets also supported European trading.
Despite the market recovery, investors continued to monitor inflation and interest rate expectations in the United States.
Analysts noted that strong corporate earnings and interest in sectors beyond artificial intelligence could help broaden the market recovery.
However, concerns over elevated valuations and borrowing costs remain potential risks.