Software Maker Dassault Systèmes Falls 8% as AI Fears Persist; Europe Markets Edge Higher

Why It Matters

The drop in Dassault Systèmes signals growing caution toward AI‑driven valuations, potentially reshaping capital allocation across Europe’s tech sector.

Key Takeaways

• Dassault Systèmes down 8% amid AI uncertainty
• MSC highlighted defense spending, strategic autonomy
• NatWest launches £750 million share buyback
• Rio Tinto suspends Simandou operations after fatality
• European mining index falls over 1%

Pulse Analysis

The recent 8% plunge in Dassault Systèmes shares reflects a broader wariness among European investors about the sustainability of AI‑centric growth narratives. While the software maker has long been a bellwether for industrial digital transformation, heightened scrutiny over AI hype and uncertain monetisation pathways has prompted a sell‑off. This reaction mirrors a cautious tone across the continent’s technology sector, where firms are increasingly required to demonstrate tangible AI revenue streams rather than speculative potential.

Against this tech‑focused backdrop, the Munich Security Conference shifted market attention toward defense and geopolitical stability. European leaders called for amplified defense budgets to secure strategic autonomy, a theme that buoyed defense‑related equities and reinforced the Stoxx 600’s modest gains. Simultaneously, NatWest’s £750 million share‑buyback signaled confidence in the banking sector’s balance sheets, while mining giants like Rio Tinto faced operational setbacks after a fatal incident halted the Simandou project, dragging the industrial metals index lower.

For investors, the juxtaposition of AI skepticism and defense optimism underscores the need for diversified exposure. Companies that can substantiate AI investments with clear profit pathways may weather volatility better, while defense and infrastructure firms stand to benefit from policy‑driven spending. Monitoring earnings updates from Airbus, Nestlé and Renault will further illuminate how European corporates balance innovation with fiscal prudence in a climate of geopolitical uncertainty.

Software maker Dassault Systèmes falls 8% as AI fears persist; Europe markets edge higher

By Hugh Leask · Published Mon, Feb 16 2026 2:20 AM EST

European markets opened higher on Monday, as investors digested the key points from this year’s Munich Security Conference.

The pan‑European Stoxx 600 was up 0.2% at 8:45 a.m. in London (3:45 a.m. ET), with major bourses and most sectors in the region in positive territory.

Geopolitics and defense returned to the spotlight as investors focused on the conference. Several European leaders and policymakers reiterated the need for greater defense spending to accelerate the continent’s strategic autonomy, discussing a common nuclear shield.

Despite U.S. Secretary of State Marco Rubio striking a markedly more conciliatory tone toward European allies in his speech Saturday, German Chancellor Friedrich Merz acknowledged a “deep divide” in the transatlantic partnership, warning that the post‑World War Two rules‑based order “no longer exists.”

“Appeasement always brings new wars,” said EU’s Kaja Kallas.

Also speaking at the MSC, Ukrainian leader Volodymyr Zelenskyy said his country would be ready to join the EU by 2027, and that a date for accession should be included in any peace agreement with Russia.

In equity markets, U.K. lender NatWest Group gained 3.6% as it began a £750 million ($1.02 billion) share‑buyback program on Monday.

Elsewhere, European mining stocks saw some of the biggest moves to the downside in morning dealmaking. Rio Tinto lost almost 2% after the multinational mining company suspended work at its Simandou iron‑ore mine in Guinea following a fatality at the SimFer project late Sunday.

Ahead of its latest earnings update Tuesday, BHP Group fell 2.4%, while Glencore – which had been set to merge with Rio Tinto until the tie‑up was abandoned earlier this month – also lost ground, falling 1.7%. Fresnillo retreated 1.2%, and Anglo American was 0.6% lower.

The FTSE Industrial Metals and Mining Index was last seen down 1.2%.

In corporate earnings, Airbus, Nestlé and Renault are among the names reporting results later this week.

In Asia, Japan’s Nikkei advanced 0.2%, as economic growth in the country came in at 0.2% annualised for the December quarter, lagging an expected 1.6% print. Trading was thin elsewhere in the region, as markets in China, South Korea and Taiwan were closed for the Lunar New Year holiday.

U.S. stock markets were closed on Monday for Presidents’ Day.