European AI-exposed stocks fall after hot US inflation fuels global selloff

By Reuters News

** Shares in rate-sensitive European chip and other AI-exposed stocks fall sharply, tracking an overnight selloff in US and Asian markets

** The STOXX tech .SX8P index falls 2.6%, heading for its worst day since July and leading sectoral losses on the wider STOXX 600 .STOXX index

** The tech index is set for a second straight weekly loss and is down 4.8% so far this week

** "The concern is not necessarily weakening AI demand, but whether heavily leveraged operators can continue financing aggressive expansion at increasingly expensive borrowing costs," Abed Jarad, analyst at mwb-research.com says

** "For now, I see this primarily as a valuation reset rather than a fundamental deterioration," he adds

** Sector heavyweight ASML ASML.AS, STMicroelectronics STMPA.PA, BESI BESI.AS, Infineon IFXGn.DE and ASMI ASMI.AS fall between 5% and 8%

** Siltronic WAFGn.DE, Soitec SOIT.PA, Aixtron AIXGn.DE, Technoprobe TPRO.MIand AT & S ATSV.VI are down between 6% and 9.5%

** Other AI-exposed stocks such as Schneider Electric SCHN.PA, Nokia NOKIA.HE, Legrand LEGD.PA, ABB and Prysmian PRY.MI all slide between 3% and 5.1%

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.