AI jitters, but the STOXX still rises
SPY•The STOXX 600 rose 0.6% even as European technology stocks fell 1% on renewed AI investment concerns. Givaudan gained 6.5% after reporting third-quarter organic sales growth ahead of expectations, while LVMH fell 1.9% after missing sales expectations.
1. European markets advance
The STOXX 600 rose 0.6%, while European technology stocks fell 1% as concerns about the future of AI investment weighed on the sector. ASML and Infineon each fell around 2%. Broadcom CEO Hock Tan said the cost of capital would be the biggest constraint on the AI buildout and likened much of the investment to casino gambling.
2. Mixed sector moves
Luxury stocks fell 1.3% after LVMH missed third-quarter sales expectations, with the company down 1.9%. Chemicals stocks rose 1.7%, led by Givaudan, whose shares gained 6.5% after it reported third-quarter organic sales growth well ahead of market expectations.
3. Regional indexes rise
The DAX gained 0.5%, the CAC rose 0.4% and the FTSE climbed 0.9%.
