Apple Margin Warning Triggers European Tech Sell-Off
European shares declined Tuesday after Apple Inc. warned that rising memory chip prices would compress margins during the holiday shopping quarter.
European stock indices declined Tuesday, driven by a sell-off in the technology sector. Apple Inc. triggered the downturn after issuing a margin warning, cautioning that rising memory chip prices would compress gross margins during the holiday shopping quarter. This announcement led to losses for semiconductor firms, including ASML, STMicroelectronics, and Infineon.
Market volatility increased as Oracle Corporation announced plans to raise $20 billion through bond and share sales to fund datacenter and cloud infrastructure expansion. In contrast to the tech slump, Koninklijke Philips shares rose following a report of higher quarterly profits. Meanwhile, Lufthansa narrowed its 2026 operating profit forecast, citing the impact of jet fuel costs.
Broader investor caution was fueled by anticipation of the U.S. October nonfarm payrolls report and the U.S. midterm elections. The elections are viewed as a referendum on the first two years of President Donald Trump's second term.
