European Markets Tumble as Tech Faces Global Pressure

European shares experienced a drop from record highs, with technology shares under global pressure. Zalando's stock fell after an investigation into its financial statements. Global tech turbulence, AI-driven demand, and ECB rate expectations contribute to market anxieties. Meanwhile, easing oil supply boosts Brent crude, and Wise shares soar on positive reports.

European shares retreated from record levels on Friday, led by a decline in technology stocks mirroring global sector weakness. Zalando saw its shares slip 6.3% following a financial probe by Germany's BaFin into potential breaches.

Pan-European STOXX 600 index ended 0.7% lower despite modest weekly gains. The global tech sector faced volatility with rising memory chip costs driven by AI demands, affecting Asian and US markets. European tech firms, including chipmakers and AI equipment producers, experienced declines.

Meanwhile, easing tension in the oil supply chain returned Brent crude to healthier levels, aiding the STOXX 600. US inflation worries, ECB interest rate hike predictions, and individual market stories like Volkswagen's job cut plans and Wise's impressive performance marked the economic landscape.