European stocks slip as bond yields offset AI rally

European stocks closed lower on Tuesday, reversing earlier gains as investors weighed rising global bond yields against renewed optimism over artificial intelligence spending. The pan-European STOXX 600 index fell 0.1%, while Germany's DAX was flat and France's CAC 40 and London's FTSE 100 each dropped about 0.5%. Chip and semiconductor stocks were the session's bright spot after Reuters reported that Anthropic's IPO prospectus signals a sharp increase in cloud, computing power, and infrastructure spending. Infineon Technologies rose 4.8%, ASML Holding gained 4.18%, and X-Fab Silicon Foundries climbed 7.5%. However, Eiffage fell 3% and Vinci dropped 2.4% after France proposed a large tax hike on motorway concessions and major airports. September's losses have broken the STOXX 600's six-month winning streak, with the index down nearly 2% for the month. Government bond yields have reached their highest levels since the 2008 financial crisis, while a new European Central Bank rate hike and hawkish central bank statements have added selling pressure.