Stock markets on both sides of the Atlantic posted moderate gains Tuesday on Fed rate cut speculation, but tech sector weakness undermined the bullish sentiment, dealers said.

Shares of artificial intelligence star Nvidia tumbled in morning Wall Street business, following a report in The Information that Facebook parent Meta could use Google chips in its data censors.

Investors in tech stocks have been trying to move past fears that AI enthusiasm may have created a bubble that is waiting to burst.

"AI remains one of the most powerful forces reshaping markets, but the tone is changing," wrote Saxo Markets' Charu Chanana.

"Strong earnings from leading chipmakers (led by Nvidia)... reassure investors that demand is real, yet the sharp swings in market reaction show that enthusiasm now sit

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