European stocks gave up early gains and ended lower on Friday, weighed down by Wall Street on renewed concerns about a possible AI bubble, erasing the week’s gain on optimism about the Federal Reserve’s interest rate cut.
The pan-European STOXX 600 index closed down 0.53%, a day after recording its biggest daily rise in more than two weeks. During the week, the index remained stable.
A sense of risk aversion gripped markets after Broadcom’s profit margin warning increased concerns about the viability of the AI-driven rally and ambitious spending in the sector – concerns initially triggered by Oracle’s disappointing forecast on Wednesday.
“What we are seeing today is a clear loss of appetite for technology stocks,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, adding that Europe’s relatively smaller losses are due to its more limited exposure to technology.
Regional stocks exposed to AI fell, with ASML and Schneider Electric down 5% and 4.2% respectively.
IN LONDON, the Financial Times index fell by 0.56%, to 9,649.03 points.
IN FRANKFURT, the DAX index fell by 0.45%, to 24,186.49 points.
IN PARIS, the CAC-40 index lost 0.21%, to 8,068.62 points.
In MILAN, the Ftse/Mib index fell by 0.43%, to 43,513.95 points.
In MADRID, the Ibex-35 index recorded a drop of 0.17%, to 16,854.40 points.
IN LISBON, the PSI20 index increased by 0.09%, to 8,001.36 points.
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