European shares fell on Friday as a technology rout on Wall Street spread across the Atlantic. The STOXX 600 still holds a year-to-date gain of more than 10%, now ahead of the S&P 500.
The STOXX 600 slid 1.66% on Friday, its steepest single-day drop since March, as the selloff in US technology stocks reached European markets. The index hit an over one-week low.
The decline erased most of the week's rally, leaving the index with a 0.5% weekly gain. Just 24 hours earlier it had come close to record highs.
Among national benchmarks, Germany's DAX fell 1.7% and France's CAC 40 dropped 1.4%. Spain's IBEX 35 lost 1%, while London's FTSE 100 was down 1.5%.
Nasdaq correction spills across the Atlantic
Heavy losses in Europe's semiconductor and software names drove the retreat. ASML and Prosus fell over 1% each, while Capgemini lost 2% and SAP 0.9%.
Overnight, the Nasdaq Composite plunged 5.52%, confirming a technical correction. It closed more than 10% below its October 6 all-time high. The S&P 500 fell more than 4% with it.
The selling followed investor alarm over Tuesday's US midterm elections, where Democrats won majorities in both the Senate and the House. Dan Coatsworth, head of markets at AJ Bell, said: "The midterm election result muddied the waters as the Democrats now have more influence".
Earnings hold up
Europe's third-quarter earnings season offered support. Roughly 50% of STOXX 600 constituents have reported, and more than half beat consensus profit expectations.
Brent crude futures tumbled roughly 20% over the week to slip below $100 a barrel.
STOXX 600 pulls ahead of the S&P 500
The STOXX 600 enters the weekend with a year-to-date advance of more than 10%. The S&P 500's 2026 gain has shrunk to just over 7%.
Among individual movers, Teleperformance slumped 18% after cutting its full-year revenue growth outlook.
Source: Investing.com
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