European stocks showed signs of recovery on Tuesday after the worldwide sell-off triggered by China’s DeepSeek, which unveiled an AI model built at a fraction of the cost of its American counterparts. The announcement sparked widespread concerns over the future profitability of the Artificial Intelligence sector, as well as the increasing reliance on pricey chips.
The Stoxx 600 index rose by 0.17%, buoyed by technology stocks, with Sartorius leading the charge. The biopharmaceutical company surged nearly 16%, thanks to a preliminary 2024 profit report that exceeded expectations and a “modestly positive” outlook for 2025.
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Among the regional indices, Germany’s DAX inched up 0.23% to 21,331 points, while the UK’s FTSE 100 made a more modest gain of 0.21%, reaching 8,521 points. On the flip side, France’s CAC 40 dropped by 0.30% to 7,883 points.
Peripheral markets showed mild optimism, with Italy’s FTSE MIB edging up by 0.21%, and Spain’s IBEX 35 moving up just 0.09%.
After Monday’s heavy losses, the STOXX Europe 600 Technology sector, which had fallen 3.3% due to setbacks from Dutch chipmaker ASML (-7%) and ASM International (-12%), found some stability, rebounding into positive territory by Tuesday.
Alten saw its stock jump 7.8% following its annual report, while Siemens Energy climbed 3.4% on news that it had exceeded revenue expectations for the first quarter, buoyed by strong demand for offshore wind turbines.
Results from SAP, Foxtons Group, and Logitech are expected later on Tuesday, adding more potential momentum to the market.
Across the Atlantic, the U.S. market also took a hit. The Nasdaq and S&P 500 saw sharp declines, as DeepSeek’s model caused ripples across tech stocks. However, the Dow Jones industrial average managed to reverse its losses, closing at its highest point of the day, fueled by rallies in Johnson & Johnson and Salesforce.
Nvidia, the chip giant at the heart of the tech sector, experienced a staggering $597 billion market capitalization loss on Monday—an unprecedented single-day wipeout in U.S. history. Its stock plummeted 17%, closing at $118.58, marking its worst trading day since March 16, 2020, during the early stages of the Covid-19 pandemic.
