European Tech Sell-off Drags Markets From Record Highs

Zalando proved to be a significant drag on sentiment, with shares tumbling 6.3% after German regulator BaFin launched a financial probe into potential compliance breaches. Beyond the specific case of the e-commerce firm, broader market pressure mounted as the rising cost of components for artificial intelligence systems hit chipmakers and equipment producers across the continent. This cooling trend mirrored similar sell-offs seen earlier in Asian and US trading sessions.

Despite the tech-driven slide, some stability emerged elsewhere. Brent crude prices steadied as supply chain tensions eased, providing a minor buffer for the broader index. Corporate headlines remained mixed: Volkswagen signaled deep restructuring through planned job cuts, while Wise defied the downward trend with a strong performance. Investors now face a complex landscape defined by persistent US inflation concerns and shifting expectations for European Central Bank interest rate policy.