Tech Shares Tumble as European Markets Face Uncertainty

European shares dipped at Friday’s open, under pressure from Middle East tensions and tech stock declines. The STOXX 600 index saw a marginal weekly drop, while Brent crude prices rose. This comes amid geopolitical tensions, affecting markets, notably tech stocks, which have pulled back after recent strong gains.

European shares slipped at the start of Friday’s trading, continuing a downward trajectory as geopolitical tensions in the Middle East overshadow potential gains. A particular drag on the market came from technology stocks, which paused after an exceptional two-month rally.

The STOXX 600 index fell by 0.2% to 623.10 points, on course for a 0.5% weekly decline. Concurrently, Brent crude neared $95 a barrel, ending the week on a higher note amid stalled diplomatic resolutions between the U.S. and Iran, following recent military exchanges. Additionally, the ceasefire between Israel and Lebanon remains tenuous with Hezbollah's rejection of a U.S.-brokered deal.

Technology stocks were notably down by 2%, halting progress newly seen over the last two months. Major contributors to the downturn included European chipmakers Infineon and Aixtron, while AI equipment producers like Legrand and Schneider Electric saw minor declines. Conversely, Raspberry Pi shares soared by 11.2% after revising their profit forecast upwards, driven by robust AI-based demand.