European Markets Pressured by Tech and Banking Sectors

European stock markets closed sharply lower on Monday (Sept. 14) as bond yields rose again and concerns regarding the safety risks of artificial intelligence weighed on technology stocks. The Euro STOXX 50 fell 1.1% to 6,257, while the STOXX Europe 600 declined 0.5% to 636.

Sentiment toward the technology sector soured after Anthropic CEO Dario Amodei called for a slowdown in the development of the most advanced AI models due to fears of losing control. Discussions regarding additional restrictions on AI development raised investor concerns that investment in chips and technology infrastructure could decelerate.

Technology stocks were the primary drag on the market. ASML plunged 6.3%, Infineon fell 7.5%, Schneider Electric declined 6.8%, and Siemens Energy dropped 8.5%. This pressure indicates that investors are becoming more cautious regarding stocks with significant exposure to AI and data center investments.

The banking sector also weakened after tensions in the Middle East drove oil and gas prices higher. Shares of Santander, BBVA, Intesa Sanpaolo, and Deutsche Bank fell between 1.3% and 2%, as rising energy costs reignited concerns over inflation and expectations of sustained high interest rates in the Eurozone.

Source: Newsmaker.id