European Tech Stocks Rattled by U.S. Recession Fears
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European Tech Stocks Gripped by U.S. Recession Fears
(Reuters) - Shares of European tech and semiconductor stocks were down on Monday, as worries over a possible U.S. recession after soft data gripped financial markets and triggered a rush out of this year's top-performing stocks and into safe-haven assets. The STOXX tech index was last down 4.1%, making it the worst performer among sectoral indices on region-wide STOXX 600, which shed some 3%. A report that Nvidia could delay its AI chip also weighed on sentiment. The tech index already lost 6% on Friday after weaker-than-expected U.S. job growth and factory data, and disappointing earnings from U.S. heavyweight Intel. Chip equipment makers cslumped 12%, on top of a 13% fall on Friday. ASML, the largest maker of equipment used to manufacture computer chips, was down 4%. BE Semiconductor and STMicroelectronic were down around 5%. (Reporting by Anna Pruchnicka; Editing by Amanda Cooper)
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European tech stocks gripped by U.S. recession fears
(Reuters) - Shares of European tech and semiconductor stocks were down on Monday, as worries over a possible U.S. recession after soft data gripped financial markets and triggered a rush out of this year's top-performing stocks and into safe-haven assets. The STOXX tech index was last down 4.1%, making it the worst performer among sectoral indices on region-wide STOXX 600, which shed some 3%. A report that Nvidia could delay its AI chip also weighed on sentiment. The tech index already lost 6% on Friday after weaker-than-expected U.S. job growth and factory data, and disappointing earnings from U.S. heavyweight Intel. Chip equipment makers cslumped 12%, on top of a 13% fall on Friday. ASML, the largest maker of equipment used to manufacture computer chips, was down 4%. BE Semiconductor and STMicroelectronic were down around 5%. (Reporting by Anna Pruchnicka; Editing by Amanda Cooper)
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European technology stocks face significant pressure as concerns about a potential U.S. recession grow. The sector experiences a sharp decline, with semiconductor companies particularly affected.
European Tech Sector Tumbles Amid U.S. Economic Uncertainty
European technology stocks experienced a sharp downturn on Monday as fears of a potential U.S. recession gripped investors. The tech-heavy Nasdaq index in the United States has been showing signs of weakness, casting a shadow over the global tech sector
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.Semiconductor Companies Bear the Brunt
Among the hardest hit were semiconductor companies, which are particularly sensitive to economic cycles and global demand. ASML Holding NV, Europe's largest tech company by market value, saw its shares plummet by 3.5%. Other major players in the sector also suffered significant losses, with ASM International falling 3.7% and BE Semiconductor Industries dropping 3.9%
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.Broader Impact on European Markets
The tech sector's decline had a ripple effect across European markets. The pan-European STOXX 600 index fell by 0.5%, with technology stocks leading the losses. This downturn reflects growing concerns about the global economic outlook and its potential impact on corporate earnings
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.U.S. Economic Indicators Fuel Concerns
Recent economic data from the United States has contributed to the growing unease among investors. The U.S. services sector showed unexpected weakness in July, adding to worries about a potential economic slowdown. This data, combined with mixed signals from the labor market, has intensified fears of a recession in the world's largest economy
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.Related Stories
Global Tech Sector Interconnectedness
The reaction of European tech stocks to U.S. economic concerns underscores the interconnected nature of the global technology sector. Many European tech companies, especially those in the semiconductor industry, rely heavily on demand from U.S. consumers and businesses. As a result, any signs of economic trouble in the United States can have significant implications for European tech firms
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.Investor Sentiment and Market Outlook
The current market volatility reflects a shift in investor sentiment towards more defensive positions. As concerns about economic growth persist, investors are reassessing their portfolios and potentially moving away from growth-oriented tech stocks. Analysts suggest that this trend could continue in the short term, with market participants closely watching for further economic indicators and central bank policies
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