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European stocks outperform as AI-linked U.S. tech wobbles, Reuters says
Reuters reported Friday that Europe's STOXX 600 hit a record Thursday and has outpaced U.S. and Asian tech-heavy indexes as investors rotate away from crowded AI trades.
- New headline Was: “How US tech pain is European stock markets' gain”
- Our desk filed its story
Based on reporting by Reuters
Reuters reported Friday from Milan that European equities have recently outpaced U.S. and Japanese indexes as investors reassess crowded AI-linked trades, with the pan-European STOXX 600 at a record on Thursday and headed for its largest weekly gain since June1.
The wire said the STOXX 600 was up about 2.6 percent so far in November, while the Nasdaq-100 was roughly flat and Japan's Nikkei was down just over 3 percent1. Over about two months, Reuters said the STOXX was up more than 4 percent, the S&P 500 was down about 0.8 percent, and tech-heavy indexes in South Korea and Taiwan were down about 23 percent and 9 percent1.
Reuters attributed the relative strength to Europe's smaller concentration of mega-cap technology companies and to earnings in sectors less tied to the AI trade, including energy1. It also cited strong earnings and better-than-expected economic data as buffers, while noting that a wider Wall Street selloff would still likely weigh on global stocks1.
The same report said global tech turmoil had been sharpened by what Reuters described as the shock exit this week of Nvidia chief executive Jensen Huang, and that investors were rotating away from crowded AI trades amid questions over valuations, debt-funded spending and political scrutiny after U.S. midterm results1. Reuters also said an energy shock tied to conflict involving Iran had lifted energy-company profits but weighed on European growth because of import dependence1.