The European stock index has experienced a significant decline due to concerns over artificial intelligence (AI) and rising tensions in the Middle East. The Stoxx 600 index fell by 0.4% to 647.13 points at 09:55 GMT on Tuesday. Among the major losers were technology stocks, which lost 1.6%.

Specifically, STMicroelectronics and ASML have registered losses exceeding 1.1%, while Siemens Energy has lost nearly 1%. Gilles Guibout, head of European markets at BNP Paribas Asset Management, highlighted that valuations are being calmed but the dynamics of companies remain positive. He added that companies are more cautious regarding the security of the rally led by AI following negative results from large American scalers.

Drax Power Company, a British energy firm, has initiated an increase of 9% after merging with Brookfield and Radiant to develop a data center project valued at over 20 billion pounds. This project could attract substantial investments, reflecting the growing demand for computational resources. Bayer has gained 4.4% as German pharmaceutical and agricultural giant raised its forecast profit for the year 2026.

Health is seen as a good diversification portfolio against volatility caused by AI representation. The United States has carried out military operations on Iran's Qeshm Island in the Strait of Hormuz shortly before sending Iran to peace talks. Brent crude prices have risen by 1.3% to above $100 per barrel, recovering from a drop of 7% in the previous session.

Global goods have prepared for the status of key countries in US midterm elections. Lufthansa has gained 3.3% as analysts have focused on the resilient fuel results, while Philips has gained 4.3% after reaching a preliminary agreement with the USA Defense Department to conclude investigations related to Dutch initial 2021 defense firms that involve global early-stage recovery. Despite these developments, European technology stocks continue to face problems, particularly concerning concerns over AI and rising tensions in the Middle East.

The cautious approach of investors has reduced the desire for risk, leading to a decline in technology stocks and a general performance lower than before.