European stock markets have advanced as investors pivot towards sectors that have been overlooked in recent months, seeking opportunities beyond expensive technology shares.

As of 4:50 p.m. London time, the Stoxx Europe 600 Index rose 1.4%, setting another all-time high. Healthcare, personal care, and food and beverage sectors led the gains, while the technology segment lagged, following declines in U.S. tech companies.

Investors also bought into recently underperforming European defense stocks. A basket of defense shares compiled by Goldman Sachs climbed 6.4%, even as tank manufacturer KNDS postponed its initial public offering (IPO).

Following a weaker-than-expected U.S. jobs report, diminished expectations for further interest rate hikes propelled the Stoxx Europe 600 Index to extend its gains.

Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, stated, "There is room for this rally to broaden as investors look beyond the AI leaders to sectors supported by structural growth, policy support, and an improving cyclical outlook."