Stocks listed in Europe closed higher on Tuesday, following a Wall Street rally that propelled all three major U.S. indexes to record highs.
The pan-European Stoxx 600 provisionally ended the day 0.4% higher, with most sectors in positive territory.
On Monday, chipmaking giant Nvidia announced plans to invest up to $100 billion in OpenAI to build data centers, with the former firm's CEO Jensen Huang labeling the partnership "a giant project."
The news sparked a rally on Wall Street, with Nvidia gaining 3.9% during the session and major averages closing at new all-time highs.
European chip stocks made gains Tuesday as investors reacted to the news. Be Semiconductor ended Tuesday up 3.3%, while Infineon jumped 2.4% and STMicro rose 2.7%.
Equipment manufacturer ASML pared earlier losses to add 1.1%.
However, semiconductor equipment maker ASMI fell by 0.1% after it cut its guidance for the second half of the year.
Elsewhere, shares of wind farm developer Orsted were up by 3.9% after a U.S. judge ruled the company could continue work on a New England project that had been halted by the Trump administration.
U.K. home improvement giant Kingfisher ended 14.6% higher to top the Stoxx 600 after the company raised its outlook amid rising domestic demand.
Sentiment got a further boost Tuesday as the OECD lifted its global and U.S. economic growth forecasts for 2025.
Global investors are also reacting to the latest developments on Sino-U.S. relations. At a press conference in Beijing on Tuesday, U.S. Ambassador to China David Perdue said that a meeting between U.S. President Donald Trump and Chinese leader Xi Jinping was more likely to take place in early 2026 than during the tail end of this year. Â
Overnight in Asia, Taiwan stocks hit a record high on the back of the U.S. tech rally, while in the U.S., the S&P 500Â reached new heights as investors monitored the risks to the market's rally to record levels.