European Tech Stocks Slide as Middle East Unrest Drives Energy Gains

STMicroelectronics led the decline, plummeting 15% after issuing a downbeat revenue forecast for the third quarter, while BE Semiconductor Industries shed 4.6% following its own results. The sentiment was further dampened by Alphabet’s disclosure of aggressive capital spending plans for 2026, which prompted investors to question the immediate profitability of heavy artificial intelligence investments.

Contrasting this tech-driven slump, the energy sector managed a 0.6% gain. Brent crude prices climbed as regional conflict intensified, marked by new U.S. strikes and Houthi attacks on tankers. With the market landscape shifting, focus has moved toward the European Central Bank, where officials are widely expected to hold current interest rates steady.