European stocks are poised for a mixed opening on Friday as investors react to a global sell-off in chipmaking technology stocks, following a disappointing earnings report from Broadcom. According to IG futures data, London's FTSE 100 is expected to open 0.1% higher, France's Cac 40 is set for a 0.3% increase, while Germany's Dax is projected to open 0.2% lower [1].
The sell-off in technology stocks was particularly severe in U.S. and Asian markets overnight. South Korea's Kospi index, which is heavily weighted towards chipmakers, fell 4.3%. Major chip stocks such as Samsung Electronics and SK Hynix saw significant declines, dropping 4.3% and 7.6% respectively [1]. In the U.S., the Dow Jones Industrial Average defied the tech downturn, rallying 874.86 points (1.73%) to close at a record high of 51,561.93. In contrast, the tech-focused Nasdaq Composite underperformed, slipping 0.09% to 26,830.96, while the S&P 500 rose 0.41% to 7,584.31 [1].
In Europe, the tech sector was also impacted, with Nokia shares finishing more than 6% lower after several days of strong gains for the sector [1]. The rotation out of artificial intelligence-linked stocks into more defensive sectors was a notable trend following Broadcom's earnings report [1].
On the geopolitical front, President Donald Trump stated on Thursday that he would be "honored" to meet Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, if it would lead to a deal. The ongoing U.S.-Iran war has now entered its fourth month, with the conflict currently in a fragile ceasefire [1].
CONCLUSION
The global tech sell-off, triggered by Broadcom's earnings, has led to significant declines in chip stocks across Asia, Europe, and the U.S., with European markets set for a mixed open. Defensive sectors are attracting investor interest as technology shares unwind recent gains. The market remains cautious amid ongoing geopolitical tensions and sector rotation.