European stocks hold near record highs as tech pressure offsets earnings support

European equities reached near record levels, as a decline in technology shares stifled broader gains, despite strong corporate earnings and Middle East peace talks. The Stoxx Europe 600 Index edged up 0.3%, just shy of an all-time high reached the previous day. Resilient balance sheets supported European markets, with solid second-quarter earnings driving upgrades in healthcare, power infrastructure, and consumer sectors.

Germany’s DAX and France’s CAC 40 each climbed 0.1% and 0.7%, respectively. London’s FTSE 100 rose 0.3%. A technology sell-off originating in Asia impacted European equity markets, limiting overall index momentum.

Semiconductor and hardware firms faced pressure after reporting losses, including Advanced Micro Devices Inc. and SpaceX, which posted earnings below expectations. Both companies had raised revenue projections for AI infrastructure and faced high valuation metrics, leading to significant price drops that spread across global tech industries.

Energy traders kept tabs on a proposed Iran-Oman diplomacy deal, aiming to end U.S. conflict and resolve Gulf transit issues. The agreement would grant Tehran control over inbound shipping routes into the Persian Gulf via the Strait of Hormuz, while Oman managed outbound traffic.

Oil prices stabilized after two days of steep declines, limiting relief for sovereign bond yields but preventing a resurgence in short-term inflation. Global markets awaited key U.S. employment data, including Thursday’s ADP private payrolls report and Friday’s official nonfarm payrolls release, which would heavily influence interest rate expectations.

Recent monetary tightening bets were softened, with futures now suggesting a 48% chance of a 25-basis-point Federal Reserve rate hike at September's meeting, down from 58% earlier in the week.

European investors watched closely for signs that U.S. employment growth would ease, allowing central banks to maintain policy rates through autumn. Among individual earnings, WPP surged 25% following strong first-half 2026 results, while Wizz Air fell 5.3% after reporting a first-quarter operating loss. Deutsche Telekom rose 5%, and Siemens declined 6% after reporting quarterly results.