European Stocks Wobble as Tech Takes a Hit

European markets were largely flat on Monday, hindered by a decline in technology stocks following calls to slow AI advancements. Rising oil prices further dampened risk appetite, but energy shares saw slight gains. Attention shifts to upcoming U.S. Federal Reserve policy decisions amid rate hike expectations.

European shares remained subdued on Monday as technology stocks declined following calls for a slower pace in AI development. Leading AI companies expressed concerns over potential model misuse, influencing tech stock performance across regions.

The pan-European STOXX 600 stayed mostly unchanged at 638.95 points, though trading was volatile with declines seen in most major regional indices. Specifically, tech companies like Germany's Infineon and Dutch firms ASML and ASMI experienced a drop amid industry cautions.

While most sectors trended downward, the energy sector experienced a slight increase. Oil prices surged over 2% due to geopolitical tensions in the Middle East, contributing to broader market caution. Investors now eye the U.S. Federal Reserve's impending policy decision, with bets on a likely interest rate hike.