STMicroelectronics Shares Drop 4.18% Amid Iran-USA Tensions
STMicroelectronics sees a significant decline this Thursday, amid geopolitical tensions affecting the entire European tech sector. The stock falls 4.18% to 28.69 euros during the session, erasing some of the gains made in recent months. The CAC 40 also drops by 1.16% during the session, to 7,888 points.
Significant Drop in STMicroelectronics Amid Market Uncertainty
STMicroelectronics shares lose 4.18% to 28.69 euros this Thursday, after closing at 29.94 euros the previous day. This decline is not isolated: ASML Holding, another heavyweight in the European-listed semiconductors, also drops 4.23% at the same time. The escalation of tensions between Washington and Tehran, marked by Iran's denial of a possible ceasefire and the announced continuation of hostilities for several weeks, triggers a risk aversion movement in the markets. Brent oil has rebounded more than 6% in twenty-four hours, exceeding 108 dollars, which burdens the cost outlook for the global manufacturing industry. The SBF 120 loses 1.16% during the session, illustrating the widespread pressure on the Paris stock exchange. Despite this decline, the stock still shows substantial growth over three months (+27.83%) and over 42% over a year. Investors are awaiting the publication of the first quarter 2026 results, scheduled for April 23, to assess the operational trajectory of the Franco-Italian manufacturer.
Technical Analysis: Support and Resistance Levels
From a technical standpoint, today's decline brings the stock below its resistance level at 29.94 euros, precisely the closing level of the previous day. The 50-day moving average, positioned at 27.38 euros, continues to act as support and remains significantly below the current price, while the 200-day average (24.26 euros) confirms a fundamental upward trend. The stock thus maintains its position above all its main moving averages, indicating a medium-term upward bias despite the ongoing correction. The RSI stands at 60, a neutral zone indicating neither overbought nor oversold conditions. The major support is at 26.92 euros: a potential downward breach of this threshold would constitute a more concerning technical alert signal. At this stage, the day's decline is within the bounds of recent volatility — estimated at 12.87% over a month — and does not challenge the positive momentum established since the beginning of the year.
