AI growth concerns weigh on Prysmian despite resilient European markets - 4 Jun 2026

As of June 4, today’s news sees market reactions to disappointing forecasts from Broadcom, impacting technology stocks and raising concerns about continued growth in the AI sector. European stocks edged higher, with Milan up 0.3%, as investors weighed fresh U.S. labour data and the Fed’s rate outlook, while disappointing AI chip sales guidance from Broadcom triggered profit-taking in tech names. In Milan, Prysmian dropped 2.3%, hit by its exposure to AI-linked data-centre infrastructure. Meanwhile, Brent crude oil saw a decline of 1.5%, reflecting a risk-off attitude among investors amid geopolitical concerns, particularly the situation in the Middle East. The situation is complicated by looming discussions around U.S. Federal Reserve interest rates, with inflation moderating but not entirely alleviating the pressure for potential rate adjustments. Investor sentiment remains jittery, weighing the delicate balance between economic growth and inflation fears. Furthermore, copper traded higher today, reversing an early price dip as dwindling inventories offset investor concerns that a prolonged conflict in the Middle East could curb demand growth. On the corporate front, Taiwan Semiconductor Manufacturing Company (TSMC) signaled a prolonged gap in global chip supply relative to AI demand, potentially supporting revenue growth for years. Meanwhile, Nvidia's CEO Jensen Huang engaged in a public charm offensive in South Korea, emphasizing the country’s integral role in AI chip manufacturing as he prepares for significant investments in the region. Finally, the pro-Iran Hezbollah movement rejected a new ceasefire in Lebanon on Thursday and Israel said it would not withdraw troops from the country, undermining U.S. President Donald Trump's efforts to halt fighting there to forge peace with Tehran.