European Stocks Rise as Tech Rebound Offsets AstraZeneca Plunge

European equities rose in Thursday trading, led by a rebound in technology stocks as investor concerns over the conflict in the Middle East eased slightly. The pan-European STOXX 600 index was up 0.4% to 638.66 in morning trade, recovering from its largest single-day drop since March on Wednesday.

Tech Sector Leads Recovery

The technology sector was among the top performers, gaining 1.6% and reversing some of its recent underperformance this month. Chipmakers led the advance, with shares of Siltronic jumping 7.4%, Soitec adding 5.5%, and ASML rising 2.5%. The rally follows the sector's strongest quarterly performance since 2001, which was recorded in the second quarter.

Sentiment in the tech space was further supported by a report that China may grant its domestic AI firms limited access to high-end Nvidia chips, suggesting continued robust demand for AI infrastructure globally.

Geopolitical Tensions Ease

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Broader market sentiment improved after U.S. President Donald Trump commented that he believed Iran wanted to "make a deal," according to Reuters. This helped calm investor nerves after the U.S. launched fresh strikes on Iran a day earlier. In response to the slightly de-escalated tone, crude oil prices edged lower, providing a tailwind for Europe's energy-importing economies.

Regionally, Spanish stocks outperformed with a 0.9% gain, rebounding from a three-week low. The move came after President Trump called Spain "very generous" in relation to its NATO contributions, easing trade-related fears from the previous session.

Corporate Movers

Limiting the broader market's advance, pharmaceutical heavyweight AstraZeneca saw its shares plunge 8%. The significant drop followed the company's announcement that its nerve disease drug Wainua, developed with Ionis, failed to meet the main goal of a late-stage trial focused on reducing cardiovascular deaths.