European stocks reverse gains, dragged down by tech and defense shares.

European stocks retreated from a record high, with technology shares slumping alongside their US chipmaker peers. The Stoxx Europe 600 Index closed 0.4% lower, having risen as much as 0.8% intraday before erasing gains. Technology stocks dragged the benchmark index lower, with ASML Holding NV falling 6.5%, while the Nasdaq 100 Index plunged as much as 6.4%. Investors are reducing exposure to the sector on concerns that a Democratic sweep of Congress could affect the rollout of artificial intelligence. A basket of European semiconductor stocks compiled by UBS Group AG fell 8.6% to its lowest level since April. Defense stocks also weighed on the benchmark index after German Rheinmetall AG issued a disappointing outlook. Shares in the German defense giant fell as much as 18% after the company on Thursday cut its 2026 sales target for the second time, citing delays to the Boxer armored vehicle program.