FX.co ★ European Stocks Fall, Tech Stocks Down 4%

European equities retreated on Thursday, with the Euro Stoxx 50 down 0.9% and the Stoxx 600 off 0.4%, as heavy selling in technology stocks weighed on overall sentiment. The European technology sector slumped more than 4%, mirroring a sharp global rotation out of AI-related names after the Democrats secured control of both chambers of the US Congress. The outcome fuelled worries that stricter regulation and heightened scrutiny of US data center projects could slow infrastructure build-out and dampen demand for semiconductors. ASML Holding dropped 7%, ranking among the sector’s steepest decliners. Rheinmetall was also hit hard, plunging more than 16% after cutting its full-year guidance, making it one of the worst performers of the session. In addition, Deutsche Telekom slipped nearly 2% after unveiling a €2 billion share buyback programme that disappointed investors by coming in below market expectations.