(RTTNews) - European equities are projected to begin the session lower on Thursday, as technology shares come under scrutiny following Broadcom's underwhelming projection for artificial intelligence semiconductor sales, which has sparked new doubts regarding the sustainability of the artificial intelligence driven surge that propelled worldwide markets to fresh peaks recently.

With inflation and interest rate worries intensifying, investors are also likely to monitor ongoing developments in the Middle East along with fluctuations in oil prices.

Federal Reserve Bank of Dallas President Lorie Logan remarked on Wednesday that inflation is taking longer than anticipated to approach the central bank's 2 percent objective, suggesting that policymakers might consider raising interest rates later this year.

In a separate statement, New York Fed President John Williams indicated that U.S. monetary policy remains appropriately positioned, though he sees no clear trajectory for future interest rate adjustments.

ECB board member Pierre Wunsch highlighted that any progress toward a peace agreement in the Middle East would play a key role in discussions at the central bank's upcoming June meeting.

Eurozone retail sales figures, remarks from ECB President Lagarde, and U.S. weekly jobless claims data are expected to draw attention later, ahead of the crucial monthly U.S. employment report scheduled for Friday.

U.S. stock index futures moved lower while Asian markets traded sharply down after mixed results and guidance from chip designer Broadcom.

Renewed tensions between the U.S. and Iran, coupled with stalled peace negotiations, added to market unease.

Iran indicated that communication lines with Washington stay active, yet no concrete advancement has occurred to conclude the conflict.

By contrast, U.S. President Donald Trump suggested that progress in discussions with Iran could materialize within days, potentially as soon as the weekend.

The dollar softened yet remained close to a two-month peak, while gold recovered nearly 1 percent to reach $4,475 an ounce amid hopes for a resolution to the U.S.-Israeli conflict involving Iran.

Brent crude futures declined toward $97 a barrel following three sessions of gains, with some relief emerging after Israel and Lebanon reached a ceasefire agreement through talks in Washington.

U.S. stocks closed lower overnight, as the latest U.S.-Iran exchanges, worries over elevated valuations, and evolving monetary policy outlooks prompted profit taking after robust advances in recent days.

The U.S. and Iran traded strikes amid heightened hostilities in the Gulf region, heightening concerns about the stability of a tentative ceasefire.

Positive economic indicators helped contain broader declines, as the services sector grew at a faster pace and private payrolls exceeded expectations in May.

The Fed's Beige Book noted that U.S. firms faced another month of energy related price increases tied to the Iran situation.

The S&P 500 fell 0.7 percent, ending a nine-day winning streak, while the Dow declined 1.2 percent and the tech-focused Nasdaq Composite dropped 0.9 percent.

European shares finished lower on Wednesday, as fresh U.S.-Iran clashes and the absence of meaningful peace breakthroughs underscored persistent risks to energy markets and Gulf shipping routes.

Additional concerns over private credit markets, tariff issues, and inflation along with interest rate expectations also pressured sentiment.

The pan-European STOXX 600 declined 0.7 percent, the German DAX lost 1.3 percent, France's CAC 40 shed 0.7 percent, and the U.K.'s FTSE 100 eased 0.4 percent.

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