European stock markets declined on Thursday, with the pan-European STOXX 600 index falling by approximately 0.5% to 0.8%. The downturn was primarily led by a sharp sell-off in the technology sector, which saw its regional index drop by 2.7%.
The main catalyst for the tech slump was chipmaker STMicroelectronics, whose shares plummeted around 15% after the company issued a third-quarter revenue forecast that fell short of market expectations. The negative sentiment was compounded by disappointing results from U.S. tech giant Alphabet, which sparked investor concerns about the rising costs and profitability of artificial intelligence investments.