European Markets Hit Record Highs on Tech Surge

Technology shares led the rally with a 1.9% jump, maintaining their momentum throughout the week. A primary driver of this sentiment remains the softer U.S. jobs data, which cooled fears of imminent Federal Reserve rate hikes this September. Investors are now looking toward a projected 22% growth in second-quarter earnings, a figure that continues to underpin bullish positions across the continent.

Despite the broad rally, market participants are adopting a more selective approach. With valuations stretched, the margin for error has narrowed significantly for individual firms. Outside the equity markets, geopolitical friction persists, with Iran recently proposing new shipping regulations for the Strait of Hormuz, a development traders are monitoring for potential impacts on global supply chains.