Stocks in Europe fell on Friday, with both the Stoxx 50 and Stoxx 600 losing more than 1%, pulling back after two straight sessions of gains as concerns over the AI and tech sectors resurfaced. For the week, the Stoxx 50 is down 2.3% and the Stoxx 600 has dropped 1.9%, putting them on track for their worst week since April, in line with declines seen in Asia and the US. ASML Holding slid more than 4%, Infineon Technologies fell 3%, and Prosus dropped 1.9%. Investors were also monitoring reports of a US–Russia peace proposal for Ukraine that would allegedly require Kyiv to concede territory. Defense stocks moved lower as well, including Rheinmetall (-5.4%), Leonardo (-3.3%), Thales (-2.3%), and BAE Systems (-1.7%). Meanwhile, flash PMI figures showed that Germany’s manufacturing sector remained weak, while growth in services also slowed. In France, the manufacturing PMI disappointed but the services one pointed to growth.