(Updates prices)

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Global tech stocks lead declines, investors ponder

valuations

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Wall Street CEOs question sustainability of rally

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Stocks recoup some losses later in trading session led by

China

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Safe-haven gold, bonds draw in demand

By Amanda Cooper

LONDON, Nov 5 (Reuters) - Stocks fell on Wednesday, as a

selloff in global tech shares dragged down markets from Tokyo to

Frankfurt, driving volatility to highs not seen since April and

helping underpin safe-haven assets like gold and government

bonds.

Asia stocks were hit particularly hard overnight, pushing

Japan's Nikkei down nearly 7% from Tuesday's record highs at one

point, while shares in South Korea plunged as much as 6.2%

before clawing back some losses to be down 2.9%.

In Europe, tech was the worst-performing sector of the STOXX

600, which dropped 0.2% on the day, while Germany's DAX

fell 0.3% and Amsterdam's AEX index, home to

Nvidia ( NVDA ) supplier ASML fell 0.1%.

U.S. e-mini futures slid 0.1%, suggesting Tuesday's 1.2%

drop for the S&P 500 may continue.

STOCKS RETREATING FROM RECORD HIGHS

Stocks are retreating from record highs on fears equity markets

may have become overstretched after the CEOs of Wall Street

heavyweights Morgan Stanley ( MS ) and Goldman Sachs ( GS )

questioned whether sky-high valuations can be sustained.

Lombard Odier economist Samy Chaar said the overall backdrop

remained supportive of equities, given that interest rates will

continue to fall, while economic growth mostly holds up.

"Statistically speaking, we've had a couple of good years,

so there is some anxiety here. The data's still OK, governments

are spending, central banks are cutting," he said.

"Earnings are (around) 9% above what was expected initially.

The private sector is doing well. Of course, valuations are

super, super demanding. So there is no room for comfort or error

here," he said.

Last month, banking giant JPMorgan Chase's ( JPM ) CEO Jamie

Dimon had warned of a heightened risk of a significant

correction in the U.S. stock market within the next six months

to two years.

The warnings come as a surge in enthusiasm for generative AI has

swept across stock markets worldwide this year, drawing

comparisons to the dotcom bubble.

"At some point, profits need to be booked. Especially when

we've seen repeatedly solid runs to record highs," said Matt

Simpson, senior market analyst at StoneX in Brisbane. "Those

with money on the line aren't likely seeking answers right now -

they're just copying each other like kids in an exam. And the

answer is to run."

In premarket trading, shares in AMD and Super Micro

Computer ( SMCI ) fell 4.5% and 6.8%, respectively, while Big

Tech shares showed more stability, with Meta up 0.3%

and Nvidia ( NVDA ) down 0.8%.

Chinese shares rose 0.2% as the State Council's tariff

commission said it would suspend its 24% additional tariff on

U.S. goods for one year but retain a 10% levy following last

week's meeting between President Xi Jinping and U.S. President

Donald Trump.

In currencies, the dollar was also steady, having fallen

overnight against the safe-haven yen before paring those

losses to trade at 153.695, almost unchanged on the day, after

the release of minutes from the Bank of Japan's September policy

meeting.

The euro was last a shade firmer at $1.1491, having

hit a three-month low following five straight days of declines,

while the pound was up 0.2% at $1.304, after dropping to

its lowest since April the day before, after finance minister

Rachel Reeves seemingly paved the way for tax rises in her

upcoming budget in a speech on Tuesday.

Among safe-haven assets, gold rose nearly 0.85% to

$3,965 an ounce, while U.S. Treasury prices also retained some

of their overnight gains, which kept the yield on benchmark

10-year notes steady at 4.09%.

Bitcoin briefly fell below $100,000 for the first

time since June in choppy trading. It was last up 2.3% at

$102,582.

(Additional reporting by Gregor Stuart Hunter in Singapore;

Editing by Peter Graff and Hugh Lawson)