Weakness in US tech becomes a gain for European stock markets
A tech selloff in the US, deepened by the exit of Jensen Huang from Nvidia, is helping European indices, with the STOXX 600 at a record. Reported by Reuters.
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what happened
A global tech selloff, which deepened after the surprise departure this week of Jensen Huang as Nvidia's chief executive, may prove a boon for European stock markets. Reuters reports that the region's relatively small share of mega-cap tech firms is shielding it from turmoil in the AI sector.
The pan-European STOXX 600 hit a record high on Thursday and is heading for its biggest weekly gain since June. Support is coming from earnings in sectors less tied to the AI trade, such as energy. So far this month the STOXX 600 is up about 2.6%, the Nasdaq-100 is roughly flat and Japan's Nikkei is down just over 3%.
Investors describe a rotation away from the most crowded AI trades, driven by doubts over valuations, debt-funded spending and the possibility of tighter scrutiny after Democrats' midterm election sweep.
why it matters
The protection for Europe is only relative: if Wall Street sells off broadly, global equities would still suffer. Information technology makes up over 35% of the MSCI USA index but just 8.8% of its European counterpart, which is why Europe is seen as an alternative for investors seeking less tech risk.
market impact
European indices: rotation out of US tech supports the STOXX 600; US AI stocks under pressure
- STOXX 600 pressure up — capital rotating out of tech and strong energy earnings
- Nasdaq-100 pressure down — exit from crowded AI trades and doubts over tech valuations
tags
instruments
sources
- How US tech pain is European stock markets' gain — Reuters, 13 November 2026 at 12:36 UTC
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