European stocks tumbled to their lowest level in nearly a month on Monday as investors offloaded technology shares amid persistent uncertainty over U.S. tariffs.
The pan-European Stoxx 600 dropped 1.3%, extending Friday’s losses after the index ended a 10-week winning streak.
Technology stocks led the declines, plunging 3.1% to their lowest level since late January. Concerns over shifting U.S. trade policies and slowing economic growth in the world’s largest economy rattled investors. Meanwhile, Wall Street’s tech-heavy Nasdaq slid more than 4% to a near six-month low.
“A lot of investors globally are reassessing their risk exposure,” said Steve Sosnick, chief market analyst at Interactive Brokers. “Tech is bearing the brunt of it because when profit-taking or de-risking occurs, the most active stocks get hit the hardest. Aggressively cutting government spending while potentially adding tariffs fuels growth fears.”
Beyond tech, banking and industrial goods stocks also slumped, falling 2.7% and 2.1%, respectively. Both sectors had recently rallied on Germany’s substantial fiscal stimulus and expectations of increased defense spending in the region.
However, political tensions in Germany weighed on sentiment. The Greens vowed to oppose incoming chancellor Friedrich Merz’s proposal for significant state borrowing but signaled willingness to negotiate on military investments and economic reforms.
Concerns grew over Germany’s proposed €500bn (£388bn) infrastructure investment plan, with Deutsche Bank analysts warning that failure to pass the reform could severely limit fiscal expansion, weaken government credibility, and exacerbate political divisions in Europe’s largest economy.
