Brussels, September 18 (QNA) – European stocks closed sharply higher today, supported by gains in the semiconductor sector and the US Federal Reserve’s move to resume monetary easing.

The Stoxx 600 index rose 0.79% to finish at 554.97 points, while the broader technology sector jumped 4.1%.The rally was driven by European chipmakers, which tracked gains on Wall Street after Nvidia announced plans to invest $5 billion in its struggling rival Intel.

Shares of BE Semiconductor surged 7.9%, while equipment makers ASML and ASM International gained 7.7% and 8.7%, respectively.

Additional support came from the Federal Reserve’s decision last night to cut interest rates by 25 basis points, its first rate-cutting step since December.

Luxury goods stocks also contributed to the Stoxx 600’s advance, climbing 1.8%, alongside a 1.2% rise in the autos sector. (QNA)