European stocks slide as heavyweight tech, healthcare drag

European stocks slipped on Friday as investors dumped recent winners including technology and healthcare stocks and bid up banking shares after the U.S. Federal Reserve unveiled its new policy framework. The pan-European STOXX 600 index fell 0.6% by 0723 GMT. Technology stocks, which have surged about 11% this year, were down 1.1%, and healthcare index slipped 0.8%.

European stocks slipped on Friday as investors dumped recent winners including technology and healthcare stocks and bid up banking shares after the U.S. Federal Reserve unveiled its new policy framework.

The pan-European STOXX 600 index fell 0.6% by 0723 GMT. Technology stocks, which have surged about 11% this year, were down 1.1%, and healthcare index slipped 0.8%. Interest rate-sensitive banks, which have lagged the broader markets, were up 0.3%.

Fed Chairman Jerome Powell announced a new policy framework on Thursday, which focuses more on boosting economic growth and less on worries that inflation could be running too high. Norwegian Air slumped 8.6% after the budget carrier said it still needs more cash in order to weather the COVID-19 pandemic as it reported a deep loss for the first half of 2020.