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European Markets Stumble as AI Caution Weighs on Tech

A cooling sentiment toward artificial intelligence sent ripples through European exchanges on Monday, as industry leaders urged a more measured approach to development. The call for caution triggered a retreat in high-growth tech stocks, leaving major indices struggling to find direction in an already volatile trading environment.

European Markets Stumble as AI Caution Weighs on Tech

The pan-European STOXX 600 index hovered at 638.95 points, reflecting a market caught between cooling optimism and rising geopolitical pressure. Heavyweights including Germany's Infineon and Dutch semiconductor giants ASML and ASMI led the slide, bowing to concerns over potential misuse of emerging technologies.

While tech shares stumbled, the energy sector provided a brief pocket of resilience. Oil prices climbed more than 2% as tensions in the Middle East rattled supply outlooks, offering little comfort to investors bracing for the U.S. Federal Reserve’s upcoming policy meeting. With expectations mounting for another interest rate hike, market participants remain sidelined, waiting for clarity on whether the central bank will maintain its aggressive stance against inflation.

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