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Tech Rally Drives European Markets Despite Geopolitical Friction

Tech stocks surged across European exchanges on Thursday, defying market unease surrounding Middle Eastern instability. The STOXX 600 climbed 0.4% to 638.66 as investors pivoted toward semiconductor manufacturers, finding optimism in diplomatic signals from Washington and potential shifts in Chinese export policy regarding advanced AI hardware.

Tech Rally Drives European Markets Despite Geopolitical Friction

The tech sector led the session with a 1.6% uptick, anchored by strong performances from Siltronic, Soitec, and ASML. This rebound suggests a softening of earlier anxieties regarding high market valuations for chipmakers. Positive sentiment was further reinforced by reports indicating China may grant local AI firms selective access to Nvidia’s H200 chips, fueling expectations for increased infrastructure spending.

Regional performance proved uneven as Spanish stocks outperformed with a 0.9% gain, following President Trump’s recent commentary on Spain’s NATO commitments. Conversely, the healthcare sector faced a setback as AstraZeneca shares dropped sharply after a key medication failed to meet primary endpoints in late-stage clinical trials.

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