European Markets Rebound Amid U.S.-Iran Military Strikes

European stock markets experienced a volatile rebound on July 9, 2026, as a surge in technology shares offset the economic impact of a collapsed ceasefire between the United States and Iran. The pan-European STOXX 600 index rose 0.78% by Thursday's close, driven by artificial intelligence optimism and reports that China might grant domestic firms limited access to Nvidia H200 chips. Tech gains were led by chipmakers like Siltronic, though healthcare stocks fell after AstraZeneca's nerve disease treatment, Wainua, failed a late-stage clinical trial.

Geopolitical tensions escalated as the United States Armed Forces conducted airstrikes against approximately 90 targets across Iran for two consecutive days to keep the Strait of Hormuz open. Simultaneously, Iranian forces targeted Gulf states and attacked U.S. military infrastructure. Despite the violence, markets remained buoyed by statements from President Donald Trump, who indicated that Iran wanted to negotiate and that the flare-up would end quickly.

Market sentiment shifted toward the subdued on July 10 as investors reacted to renewed Middle East hostilities and high AI valuations. While chip stocks like ASML declined ahead of the U.S. listing of South Korea's SK Hynix, other sectors saw activity, including easyJet, which agreed in principle to a £5.7 billion takeover bid from Apollo Global Management. Crude oil prices dipped below $77 a barrel as investors weighed potential de-escalation against ongoing regional conflict.