CAC 40 Trims Gains Amid Global Technology Sell-Off
The CAC 40 trimmed its gains to 0.5% to hover around 8,000 on Thursday as technology stocks tumbled alongside US chipmakers. Investors reduced their exposure to the sector amid concerns that the Democrats’ sweep of Congress could affect the rollout of artificial intelligence. A UBS basket of European semiconductor stocks fell nearly 8%, reaching its lowest since April. STMicroelectronics plunged more than 9.5%, while Schneider Electric lost nearly 2%. On the other hand, the Democrats’ victory gives them a stronger platform to challenge US President Trump’s trade policies. Among the sectors most exposed to Trump’s tariffs, luxury goods are particularly vulnerable given their reliance on wealthy US consumers. Hermès edged higher, while L’Oréal gained nearly 2%. Broader markers were supported by a rotation out of technology stocks into other sectors. Most industrial shares advanced, with Sanofi rising over 1%, Air Liquide up nearly 2% and Bouygues adding close to 3%.
The CAC 40 trimmed its gains to 0.5% to hover around 8,000 on Thursday as technology stocks tumbled alongside US chipmakers. Investors reduced their exposure to the sector amid concerns that the Democrats’ sweep of Congress could affect the rollout of artificial intelligence. A UBS basket of European semiconductor stocks fell nearly 8%, reaching its lowest since April. STMicroelectronics plunged more than 9.5%, while Schneider Electric lost nearly 2%.
On the other hand, the Democrats’ victory gives them a stronger platform to challenge US President Trump’s trade policies. Among the sectors most exposed to Trump’s tariffs, luxury goods are particularly vulnerable given their reliance on wealthy US consumers. Hermès edged higher, while L’Oréal gained nearly 2%. Broader markers were supported by a rotation out of technology stocks into other sectors.
Most industrial shares advanced, with Sanofi rising over 1%, Air Liquide up nearly 2% and Bouygues adding close to 3%.