European Stocks Under Pressure as Tech Sell-Off Widens

European stocks weakened during Thursday’s trading session (October 15) as a global sell-off in technology shares dampened investor risk appetite. The STOXX 600 index fell 0.35% to 635.54 points in early trading. The decline followed hotter-than-expected U.S. inflation data, which fueled concerns regarding potential interest rate hikes by the Federal Reserve.

The technology sector bore the brunt of the pressure, dropping 3.2%. Tech stocks—from New York to Seoul—came under strain as investors grew concerned about rising borrowing costs and the impact on companies that require significant capital to build out artificial intelligence (AI) infrastructure.

Deutsche Bank noted that several companies with heavy exposure to AI have faced pressure in recent days. The concern is compounded by the fact that these firms require substantial capital expenditure, making them particularly sensitive to shifts in financing costs and credit conditions.

Nevertheless, the corporate earnings season provided some support to the market. Shares of Ericsson surged 9.9% after the telecommunications equipment manufacturer reported a smaller-than-expected decline in its third-quarter core profit; efficiency measures helped offset rising component costs.

Shares of Pernod Ricard also rose 3.2% after the beverage company reported a 0.9% decline in sales for the first quarter of its 2027 fiscal year—a result that outperformed market expectations. These corporate performance developments served as a buffer, helping to mitigate broader downward pressure across European stock markets.