Europe: Shares stumble at end of best month since June on AI worries
European technology sector index falls 2.8% for its worst day since Jul 7 and led sectoral declines
European technology sector shares tumbled 2.8% on Friday (Oct 30), marking its worst day since July 7 and adding to a sectoral decline, as global tech stocks suffered a major sell-off. Despite recording its best month since June, the Stoxx 600 index ended the day 0.4% lower at 646.75 points. The drop was triggered by Amazon and Intel's US results, reigniting worries about the high costs of building out AI infrastructure, prompting a worldwide retreat from technology stocks.
Daniela Hathorn, a senior market analyst at Capital.com, noted that the growing message from investors is that strong AI demand alone is not sufficient. The European tech sector index dipped 2.8% for its worst day since July 7, leading the decline in the Stoxx 600. AT&S, Soitec and Technoprobe led losses on the index, with declines between 9% and 13%.
Even with robust earnings in Europe this quarter, the sudden market sentiment shift demonstrates how quickly bullishness can vanish.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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