Zalando Probe and Tech Sell-off Drag Down European Markets

Zalando shares led the retail decline, shedding 4.3% after Germany’s financial watchdog, BaFin, opened an inquiry into potential discrepancies within the company’s 2025 financial statements. The broader retail sector struggled to maintain momentum, dipping 0.2% in sympathy with the e-commerce giant.

Technology stocks faced even sharper pressure, falling 1.4% as international volatility rippled through the continent. Investors reacted to a surge in memory chip prices driven by relentless demand for AI hardware, a trend that hit Asian markets overnight and pushed Nasdaq futures down by roughly 1%. Chipmakers bore the brunt of the sell-off, with Infineon dropping 3% and STMicroelectronics falling 2.4%. Major semiconductor equipment suppliers, including BE Semiconductor and ASML, also saw their valuations slide as the industry adjusted to the rising costs of chip production.