European stocks traded in a narrow band on Thursday, with major benchmarks pausing near their one-week highs as investors balanced the market-moving results from U.S. chipmaker Nvidia Corp. with persistent caution across industrial and consumer sectors.
The pan-European Stoxx Europe 600 Index edged 0.1% lower. National markets largely tracked that subdued tone: Germany’s DAX finished flat, France’s CAC 40 slipped 0.2% and London’s FTSE 100 declined 0.4%.
Nvidia and the semiconductor ripple
Nvidia reported quarterly revenue that more than doubled year-on-year, driven by strong demand for artificial intelligence hardware. CEO Jensen Huang reinforced that momentum by forecasting outsized expansion in the year ahead.
Management supplied current-quarter revenue guidance that exceeded Wall Street expectations and said it anticipates fiscal 2028 revenue growth of about 70% - markedly higher than the consensus estimate of 44%.
The stock reacted positively after hours, rising as much as 5.6% in aftermarket trading. That move marked the company’s first post-earnings uptick in several quarters and ended a recent pattern of sell-the-news reactions.
On the continent, suppliers and chipmakers that link into global hyperscalers’ spending cycles moved higher. Semiconductor-equipment leader ASML Holding NV climbed 2.5%. Chipmakers including STMicroelectronics NV, Infineon Technologies AG and BE Semiconductors recorded gains in the mid-single digits, generally between 2% and 4%.
The performance in these names reflects the expectation that hyperscalers will accelerate capital expenditure to secure hardware allocations, directly benefiting equipment makers and chip manufacturers.
Domestic demand signals and consumer caution
On the data front, Germany’s consumer sentiment index - compiled by the Nuremberg Institute for Market Decisions (NIM) together with the GfK market research institute - improved heading into September, rising to -26.6 points.
Survey compilers said gains in economic and income expectations offset households’ continued caution on discretionary spending. The modest uptick offers a possible sign that private consumption in Europe’s largest economy could slowly recover as real wage growth catches up with earlier inflation, though households remain prudent.
Energy markets and geopolitical developments
Brent crude fell 0.5% to $87.40 a barrel, marking a fourth consecutive daily decline. The drop followed reports that Qatar’s prime minister is traveling to Tehran in an effort to relaunch diplomatic peace talks between the U.S. and Iran.
That diplomatic push, coupled with discussions between Iran and Oman on commercial transit through the Strait of Hormuz, has helped to ease immediate fears of a supply paralysis through the strategic shipping lane.
Overall, Thursday’s trading highlighted a divergence in market drivers: a strong technology earnings impulse that bolstered semiconductor and equipment stocks, set against lingering caution in industrial and consumer segments and easing oil market tensions driven by diplomatic engagement.