European shares slip after STMicro, Alphabet results weigh on tech stocks

European shares edged lower as tech stocks came under pressure after Alphabet’s latest results and a sharp post-earnings drop in STMicroelectronics. The STOXX 600 fell 0.5%, while the tech sector slid 2.7%, making it the day’s main drag on European equities. STMicroelectronics dropped 15% after guiding third-quarter revenue slightly below expectations, and BE Semiconductor also declined after its second-quarter report. Alphabet’s increased 2026 capex plan by $15 billion raised fresh concerns about whether heavy AI spending will deliver returns. Offsetting the tech weakness, European energy shares rose 0.6% as Brent crude climbed above $96 a barrel amid escalating Middle East tensions. Investors were also watching the ECB, which was widely expected to leave rates unchanged, and parsing ongoing European earnings from firms such as Nestle and TotalEnergies.