Stock markets were mixed Thursday as a rally lost momentum after US jobs data clouded hopes of further interest rate cuts and fears of an AI bubble persisted.

Europe's main equity indices closed higher but Wall Street slumped following a strong open. Asia's leading stock markets were mixed.

Investors cheered an earnings report released late Wednesday by AI bellwether Nvidia, which topped expectations on fierce demand for its advanced chips.

Chief executive Jensen Huang brushed off fears of an artificial intelligence bubble that has caused global equities to wobble.

Jim Reid, managing director at Deutsche Bank, said Nvidia's results had temporarily stalled some fears.

But Adam Sarhan of 50 Park Investments warned: "When you have valuations that are this high, they're not sustainable."

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