European Tech Stocks Retreat Amid Geopolitical Strains

Geopolitical volatility in the Middle East is rattling European markets, forcing a sharp reversal for technology shares after a two-month winning streak. As Brent crude prices climb toward $95 a barrel, investors are shedding riskier assets while the STOXX 600 index heads for a 0.5% weekly loss.

The STOXX 600 index slipped 0.2% to 623.10 points this morning, reflecting broader market anxiety over stalled diplomatic efforts between the U.S. and Iran and a fragile ceasefire between Israel and Lebanon. Technology stocks faced the brunt of the sell-off, dropping 2% as the sector’s recent momentum stalled.

Major chipmakers including Infineon and Aixtron led the decline, joined by AI equipment manufacturers Legrand and Schneider Electric. However, market sentiment remained fragmented; Raspberry Pi shares bucked the downward trend, surging 11.2% after the company raised its profit forecast on the back of resilient demand for AI-integrated hardware.