Signage at the Broadcom Inc. headquarters in San Jose, California, June 2, 2025.<\/p>\n
David Paul Morris | Bloomberg | Getty Images<\/p>\n
European stocks followed global peers lower on Friday as investors monitor a global sell-off in chipmaking tech names.<\/p>\n
Shortly after the opening bell, the pan-European Stoxx 600 index opened down 0.2%. London’s FTSE 100<\/a> began the day 0.2% lower, while Germany’s Dax<\/a> fell 0.3% and France’s Cac 40<\/a> opened flat.<\/p>\n A sell-off in tech stocks gripped U.S. and Asian markets overnight, which has spread to Europe in morning trade. The Stoxx 600 technology index opened down 2%, with semiconductor names Infineon Technology and ASML falling 4% and 2.5%, respectively.<\/p>\n The moves lower came after a downbeat earnings report from Broadcom<\/a> sparked a rotation out of artificial intelligence-linked names into more defensive sectors.<\/p>\n Weakness was particularly pronounced in South Korea’s chip-heavy market. The Kospi was last down 4.3%, with heavyweights Samsung Electronics<\/a> and SK Hynix<\/a> dropping 4.3% and 7.6%, respectively.<\/p>\n In the U.S., the Dow Jones Industrial Average rallied to a fresh all-time high on Thursday, while the tech-heavy Nasdaq Composite underperformed.\u00a0<\/p>\n The 30-stock Dow jumped 874.86 points, or 1.73%, for a record close of 51,561.93. The Nasdaq lost 0.09% and ended at 26,830.96, while the S&P 500 rose 0.41% to 7,584.31.<\/p>\n In Europe, Nokia<\/a> shares finished more than 6% lower as part of the unwind in tech stocks, following several consecutive days of outsized gains for the sector.<\/p>\n On Thursday, President Donald Trump said that he would<\/a> be “honored” to meet Ayatollah Mojtaba Khamenei, Iran’s Supreme Leader, “if it was to make a deal.” The U.S.-Iran war has dragged on into its fourth month as the conflict remains locked in a fragile ceasefire.<\/p>\n