STOXX 600 Slips From Near Record as ASML, Infineon Tumble and Bank of England Rate Hike Weighs on Europe

LONDON — European stocks reversed early gains on Thursday and closed lower, pulling back from near-record levels as a selloff in U.S. chipmakers dragged down the region's technology sector.

The pan-European STOXX 600 index closed 0.38% lower at 654.87 points after a rally fizzled out once U.S. markets opened. The index had risen as much as 0.8% earlier in the session.

Near record early

European markets began the day on a strong note. The STOXX 600 rose 0.7% to 661.99 by 0905 GMT, just shy of a record high, as a Democratic sweep of Congress and falling oil prices lifted most of the region.

Basic resources rose 2%, boosted by ArcelorMittal's 5% gain after the steelmaker topped core profit expectations.

Chip stocks tumble

Technology reversed sharply once Wall Street opened. Technology stocks fell 3.2% to their lowest level in nearly two months, tracking losses on Wall Street.

Soitec slumped 16.7%, Infineon fell 8.5%, Aixtron declined 9.8%, ASML retreated 6.6% and Siltronic slid 12.3%.

The selloff was triggered by U.S. developments. Poor results from Qualcomm and fears that a Democrat-majority Congress could tighten AI regulation sparked the tech selloff.

Bank of England hike

Monetary policy added pressure. The Bank of England raised its policy rate to 4% and warned another increase could be needed if the U.S.-Iran conflict persists. The FTSE 100 gave back strong early gains to close lower after the decision.

Winners and losers

Corporate results drove individual moves. Rheinmetall slid 16.5% after cutting its 2026 sales forecast for the second time in three months, while Air France-KLM gained over 11% after beating operating profit expectations.

Data center demand helped some firms. France's Legrand gained 5.5% after raising its 2026 sales growth forecast on robust data center demand.

Regional bourses were mixed, with French and Spanish benchmarks ending higher.

Outlook

Euro Stoxx 50 futures fell 0.9% during Asian trading on Friday, signaling further pressure as the global AI selloff spread through Asia overnight.