European Stocks Find a Footing as Tech Panic Subsides

 

European markets regained their composure midweek as seismic movements from a tech-driven selloff in the U.S. began to lose momentum. The STOXX 600 index ended the day almost unchanged, recovering from earlier dips of around 0.4% driven by stress in technology and defense sectors.

This uptick comes after Asian markets showed strain—most notably the Nasdaq which had slipped by close to 1.5%. Yet, futures suggest a more measured start ahead, with the Nasdaq futures easing to just a 0.2% decline. Analysts recommend holding the line amid elevated valuations, general investor caution, and increasing scrutiny of government involvement in tech.

"As markets had been expecting perfection from U.S. markets, some correction was probably overdue," remarked Ben Laidler, equity strategy lead at Bradesco BBI.
All eyes now turn toward the Jackson Hole symposium and the impending release of the Federal Reserve’s July meeting minutes—both events poised to influence the direction of monetary policy going forward.