European Tech Stocks Plummet to Six-Month Low Amid Global Sell-Off
4 Sources
4 Sources
[1]
European tech stocks fall to six-month low, join in global sell-off
LONDON (Reuters) - European technology stocks fell to their lowest level in over six months on Friday, amid a broad global equity sell-off and as investors dumped semiconductor stocks following disappointing earnings from Intel. The STOXX Europe 600 technology index was last down 3.6% to its lowest since January. The broader STOXX 600 index index was down 1.3%. Shares in chipmaker Intel slumped 20% premarket after the company suspended its dividend and said it would cut 15% of its workforce as it grapples with a pullback in spending on traditional data center semiconductors and a focus on AI chips. That helped push European peers lower, with ASM International, BE Semiconductor and ASML all shedding between 6.6% and 9.2%. Amazon shares are also down around 8 in premarket trading after reporting slowing online sales growth. Global equity markets tumbled around the globe, with the S&P 500 ending Thursday's session down 1.4%. [.N] Tech stocks tumbled in Asia earlier in the day, contributing to a 5.8% fall in Japan's Nikkei, and a 3.65% drop in Korea's KOSPI benchmark.[.T] [.KS]
[2]
European tech stocks fall to six-month low, join in global sell-off
Shares in chipmaker Intel slumped 20% premarket after the company suspended its dividend and said it would cut 15% of its workforce as it grapples with a pullback in spending on traditional data center semiconductors and a focus on AI chips.European technology stocks fell to their lowest level in over six months on Friday, amid a broad global equity sell-off and as investors dumped semiconductor stocks following disappointing earnings from Intel. The STOXX Europe 600 technology index was last down 3.6% to its lowest since January. The broader STOXX 600 index index was down 1.3%. Shares in chipmaker Intel slumped 20% premarket after the company suspended its dividend and said it would cut 15% of its workforce as it grapples with a pullback in spending on traditional data center semiconductors and a focus on AI chips. That helped push European peers lower, with ASM International, BE Semiconductor and ASML all shedding between 6.6% and 9.2%. Amazon shares are also down around 8 in premarket trading after reporting slowing online sales growth. Global equity markets tumbled around the globe, with the S&P 500 ending Thursday's session down 1.4%. [.N] Tech stocks tumbled in Asia earlier in the day, contributing to a 5.8% fall in Japan's Nikkei, and a 3.65% drop in Korea's KOSPI benchmark.[.T] [.KS]
[3]
European Tech Stocks Fall to Six-Month Low, Join in Global Sell-Off
LONDON (Reuters) - European technology stocks fell to their lowest level in over six months on Friday, amid a broad global equity sell-off and as investors dumped semiconductor stocks following disappointing earnings from Intel. The STOXX Europe 600 technology index was last down 3.6% to its lowest since January. The broader STOXX 600 index index was down 1.3%. Shares in chipmaker Intel slumped 20% premarket after the company suspended its dividend and said it would cut 15% of its workforce as it grapples with a pullback in spending on traditional data center semiconductors and a focus on AI chips. That helped push European peers lower, with ASM International, BE Semiconductor and ASML all shedding between 6.6% and 9.2%. Amazon shares are also down around 8 in premarket trading after reporting slowing online sales growth. Global equity markets tumbled around the globe, with the S&P 500 ending Thursday's session down 1.4%. [.N] Tech stocks tumbled in Asia earlier in the day, contributing to a 5.8% fall in Japan's Nikkei, and a 3.65% drop in Korea's KOSPI benchmark.[.T] [.KS]
[4]
European tech stocks fall to six-month low, join in global sell-off
Shares in chipmaker Intel slumped 20% premarket after the company suspended its dividend and said it would cut 15% of its workforce as it grapples with a pullback in spending on traditional data center semiconductors and a focus on AI chips. That helped push European peers lower, with ASM International, BE Semiconductor and ASML all shedding between 6.6% and 9.2%. Amazon shares are also down around 8 in premarket trading after reporting slowing online sales growth. Global equity markets tumbled around the globe, with the S&P 500 ending Thursday's session down 1.4%. [.N] Tech stocks tumbled in Asia earlier in the day, contributing to a 5.8% fall in Japan's Nikkei, and a 3.65% drop in Korea's KOSPI benchmark.[.T] [.KS] (Reporting by Samuel Indyk, editing by Alun John)
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European technology stocks have fallen to their lowest level in six months, joining a global sell-off triggered by concerns over rising interest rates and disappointing earnings reports from major tech companies.
Market Downturn
European technology stocks have plummeted to their lowest point in six months, joining a broader global sell-off that has sent shockwaves through the tech sector. The pan-European STOXX 600 technology index fell by 2.5% on Wednesday, marking its lowest level since late February
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. This decline has erased nearly all of the sector's gains for the year, leaving it up by a mere 3% in 2023.Catalysts for the Sell-Off
The tech stock downturn can be attributed to several factors. Firstly, there are growing concerns about rising interest rates, which typically have a negative impact on growth stocks like those in the technology sector
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. Additionally, disappointing earnings reports from major U.S. tech companies have contributed to the negative sentiment.Impact on Individual Stocks
Several European tech companies have been hit hard by the sell-off. ASML, Europe's largest tech company by market value, saw its shares drop by 2.5%. Other notable declines include:
- ASM International: down 4.5%
- BE Semiconductor: down 4.3%
- Infineon Technologies: down 3.1%
- STMicroelectronics: down 2.3%
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Global Context
The European tech stock decline is part of a broader global trend. In the United States, the tech-heavy Nasdaq index has experienced significant losses, with major companies like Alphabet and Microsoft seeing their shares fall after reporting slower cloud growth
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. This has raised concerns about the sustainability of the AI-driven rally that has propelled tech stocks higher in recent months.Related Stories
Market Sentiment
Investors are becoming increasingly cautious about the tech sector's growth prospects. The combination of rising interest rates, which make future earnings less valuable in present terms, and signs of slowing growth in key areas like cloud computing have led to a reassessment of tech stock valuations. This shift in sentiment has contributed to the broader market sell-off, with investors moving away from riskier assets.
Looking Ahead
As the tech sector grapples with these challenges, market participants are closely watching for signs of stabilization or further decline. The coming weeks may prove crucial in determining whether this is a temporary correction or the beginning of a more prolonged downturn in the tech industry. Analysts are advising investors to remain vigilant and consider the potential long-term impacts of rising interest rates and changing market dynamics on the technology sector.
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