European Markets Tilt Toward Defensive Stocks Ahead of US Jobs Data

The pan-European STOXX 600 index climbed 0.2% to reach 640.70 points on Thursday, as steady gains in healthcare and consumer goods provided a buffer against a sharp sell-off in the technology sector. Traders are holding their breath for U.S. employment figures that could dictate the trajectory of global interest rates.

Editorial·July 2, 2026·reads: 1,284

Investors retreated from high-flying AI-linked equities, driving the STOXX 600 technology index down 2%. The decline hit manufacturers particularly hard: Soitec shares tumbled 4.5%, while Aixtron followed with a 5.1% drop. The rotation into defensive havens reflects a broader shift in market sentiment as traders weigh the risks of current valuations.

UBS analysts suggest the market may be broadening its focus beyond tech as structural growth opportunities emerge elsewhere and oil prices stabilize. Despite the cooling in some sectors, the European Central Bank remains on the radar, with traders pricing in at least one additional 25 basis point rate hike before the year concludes.

European Markets Tilt Toward Defensive Stocks Ahead of US Jobs Data

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