Global tech sell-off spreads to Europe as chip shares fall The pan-European Stoxx 600 index declined, mirroring a global sell-off in chipmaking companies that originated in U.S. and Asian markets. This downturn was triggered by a weak earnings report from Broadcom, causing investors to rotate out of artificial intelligence-linked stocks. Major European indices, along with U.S. markets, saw significant drops, particularly in the technology and semiconductor sectors.

• The pan-European Stoxx 600 index fell by 0.3%.
• U.K.’s FTSE 100 rose by almost 0.1%, while Paris, Frankfurt, and Milan closed lower.
• The Stoxx 600 technology index dropped by 2.8%, with Infineon Technology down 9.1% and ASML down 2.4%.
• Nokia shares closed 5.9% lower.
• A downbeat earnings report from Broadcom influenced the rotation out of AI-linked names.
• South Korea’s Kospi index fell 5.5%, with Samsung Electronics and SK Hynix down 6.4% and 9.9%, respectively.
• In the U.S., the Dow Jones Industrial Average was down 0.7%, Nasdaq Composite shed 2.6%, and S&P 500 slipped 1.6%.
• U.S. labor data showed nonfarm payrolls rose 172,000 in May, exceeding estimates, and the unemployment rate held at 4.3%.