23.06.202615:48:20UTC+00European Stocks Pull Back from Records

European equity indices retreated sharply from record highs on Tuesday as a selloff in the technology sector prompted investors to pare back risk exposure. The Euro STOXX 50 fell 1.2% to 6,235, while the broader STOXX Europe 600 declined a milder 0.5% to 636.

Semiconductor names led the downturn. ASML slid 5.5% and Infineon dropped 5.8% amid mounting concerns that hyperscalers have overinvested in AI infrastructure and may need to slow capital expenditure if returns fail to meet guidance. Sentiment was further pressured by SpaceX’s latest cash-raising efforts following its IPO and by Korea’s SK Hynix, which announced it would curb production of AI chips to free up capacity for commodity DRAM.

Industrial heavyweights with significant exposure to data center projects also weakened, with Siemens down 2.5% and Schneider Electric off 4%. In contrast, pharmaceuticals outperformed: Sanofi rose 1.5% after the EU approved its Cenrifki treatment.

Meanwhile, PMI figures pointed to a contraction in Eurozone private-sector activity, although the downturn was less severe than economists had anticipated.