CAC 40 Ends Higher Despite Tech Selloff
The CAC 40 edged 0.3% higher to close at 8,205 on Thursday, nearly erasing its earlier gains as technology stocks tumbled alongside their US peers. Investors reduced their exposure to the sector amid concerns that the Democrats’ sweep of Congress could affect the rollout of artificial intelligence. STMicroelectronics plunged 9.3%, while Schneider Electric lost 1.6%. Meanwhile, the Democrats’ victory gives them a stronger platform to challenge US President Donald Trump’s trade policies. Among the sectors most exposed to his tariffs, luxury goods companies are particularly vulnerable given their significant reliance on wealthy US consumers. Hermès added 1.1%, while LVMH rose 0.6%. Broader markets also benefited from a rotation out of technology stocks and into other sectors. Most industrial shares advanced, with Sanofi rising 0.5%, Air Liquide gaining 1.3% and Bouygues adding 2.6%. In contrast, TotalEnergies fell 1.1% amid an improved outlook for oil flows from the Middle East.
The CAC 40 edged 0.3% higher to close at 8,205 on Thursday, nearly erasing its earlier gains as technology stocks tumbled alongside their US peers. Investors reduced their exposure to the sector amid concerns that the Democrats’ sweep of Congress could affect the rollout of artificial intelligence. STMicroelectronics plunged 9.3%, while Schneider Electric lost 1.6%. Meanwhile, the Democrats’ victory gives them a stronger platform to challenge US President Donald Trump’s trade policies.
Among the sectors most exposed to his tariffs, luxury goods companies are particularly vulnerable given their significant reliance on wealthy US consumers. Hermès added 1.1%, while LVMH rose 0.6%. Broader markets also benefited from a rotation out of technology stocks and into other sectors. Most industrial shares advanced, with Sanofi rising 0.5%, Air Liquide gaining 1.3% and Bouygues adding 2.6%.
In contrast, TotalEnergies fell 1.1% amid an improved outlook for oil flows from the Middle East.