Italian Stocks Plunge Amid Tech Selloff

Milan’s FTSE MIB fell more than 1% to below 50,500 on Thursday, reversing earlier gains as a selloff in chipmakers weighed on the benchmark. STMicroelectronics and Technoprobe plunged over 9%, while Prysmian dropped more than 3%, tracking losses among US chipmakers as investors reassessed the pace of AI buildout following the US midterm elections. A Democratic takeover could increase regulation on AI and data centers. Defence stocks also extended their declines, tracking a sharp fall in Rheinmetall after the German firm cut its 2026 sales target for a second time. Fincantieri dropped over 4%, while Leonardo, despite raising its 2026 outlook, fell 3%. Avio lost 3.2%. Stellantis also declined 3%. Weakness among heavyweight financials added to the pressure, with BPER Banca shedding 3%.