European Markets Rally in Chipmaker Surge Amid Fed Easing
European markets ended Thursday with gains, led by the technology sector, as chipmakers surged. The rally was fuelled by the Federal Reserve's decision to ease monetary policy, marking its first move since December. In contrast, SIG Group faced a steep drop following a profit warning.
European shares closed on a positive note Thursday, driven by a strong performance in the chipmaker sector alongside monetary policy easing from the U.S. Federal Reserve. The pan-European STOXX 600 index rose 0.79% to 554.97 points, primarily boosted by a 4.1% surge in the technology sector—the largest single-day gain since April.
The rally in semiconductor stocks followed Nvidia's announcement of a $5 billion investment plan in Intel, echoing a similar uptrend in U.S. markets. Stocks like BE Semiconductor, ASML, and ASMI saw substantial gains, supported by the Fed's decision to cut interest rates by 0.25%, aiming to prevent a further labor market decline.
Meanwhile, SIG Group's shares plummeted after issuing a profit warning, and political unrest in France emerged following protests against budget cuts. The Bank of England maintained its interest rate, while sectors such as luxury goods and automakers contributed to the STOXX 600's upward movement.
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