The downturn was led by a significant drop in chip stocks, notably ASML, which plummeted 6.5% after reporting lower-than-expected net bookings. ASML's cautionary remarks regarding U.S. trade uncertainty further fueled market concerns, dragging down industry peer ASM International by 4.5%.

Meanwhile, in the United Kingdom, inflation figures for March disappointed, coming in at 2.6% according to the Office for National Statistics, below the 2.7% forecasted in Reuters' poll. This data added to the cautious sentiment among investors.

Investor attention in Europe remains focused on upcoming earnings reports from ASML and Heineken, with analysts keen to gauge their impact on market sentiment.

On the global front, market participants are closely monitoring the latest economic indicators from China, including better-than-expected first-quarter growth of 5.4% reported by Chinese state data. However, concerns over ongoing trade tensions, exacerbated by U.S. President Donald Trump's tariffs, have prompted major banks to revise down China's annual growth forecasts.

Overnight in Asia-Pacific, markets traded mostly lower, reflecting broader concerns. In the U.S., futures pointed to a subdued opening as investors await key retail sales data and further earnings reports. Nvidia, in extended trading, saw its shares decline by over 6% after announcing a substantial quarterly charge related to its export activities, particularly its H20 graphics processing units destined for China and other international markets.