European stocks reversed sharply lower on Tuesday afternoon, closing in negative territory as sovereign bond yields climbed and renewed volatility hit the technology sector. The Euro STOXX 50 fell 1.1% to 6,329, while the STOXX Europe 600 declined 0.5% to 647.
Chipmakers led the selloff: ASML dropped 7.3% and Infineon slid 8.3%, mirroring weakness in AI hardware producers worldwide. A sharp upgrade to Samsung’s quarterly profit guidance prompted investors to reassess the elevated valuations that have underpinned the recent AI-driven rally.
Stocks tied to datacenter power infrastructure also came under pressure. Siemens and Schneider Electric each lost about 4%, while Siemens Energy tumbled 9%.
Outside of technology and related names, most sectors across European markets traded higher. Luxury goods and consumer staples rebounded after Monday’s pullback: L’Oréal gained 2.7%, and both LVMH and Hermès advanced around 1%.
