STMicroelectronics Leads the CAC 40
STMicroelectronics stands at the top of the CAC 40 this Friday, while the Paris index retreats in a context of global monetary tightening. The semiconductor manufacturer is benefiting from a clear improvement in the technology sector, with its American peers posting strong gains on Wall Street at Thursday's close.
STM Returns to Contact with its 20-Day Moving Average and Dominates a Declining CAC 40
STMicroelectronics gains 2.56% to €43.53 in trading, posting the strongest advance in the CAC 40 while the index falls 0.69%. The stock returns precisely into contact with its 20-day moving average (€43.36), a threshold it had lost during the nearly 6% decline on September 14. This configuration is noteworthy: a sustained return above the 20-day moving average would open the way toward resistance at €49.06, representing a gap of approximately 13% from the current price.
The 50-day moving average remains well above, at €47.65, which represents a gap of 8.66% that the stock has yet to close. The RSI at 40 reflects a configuration still far from overbought, leaving technical room for further gains. The 200-day moving average at €40.43 provides a cushion below the current price, confirming that the longer-term trend remains bullish despite the correction of recent months.
A Sectoral Rebound Driven by American Semiconductors, Against a Backdrop of Central Bank Decisions
Today's movement is part of a favorable sectoral dynamic. At Thursday's close, Micron Technology advanced 5.50% and Advanced Micro Devices gained 6.36%, while Nvidia rose 2.54%. These performances contrast with a VIX in sharp decline, falling to 15.35 in trading versus 17.71 the previous day, signaling an improvement in risk appetite on markets. ASM International advances 1.75% and ASML Holding rises 0.79% on the European side, confirming the positive orientation of the sector.
This rebound occurs in a context of major monetary decisions: the Fed raised its policy rate on Wednesday for the first time since 2023, and the Bank of Japan raised its rate to 1.25% this Friday, a 31-year high. These tightenings weigh on risky assets in general, but the semiconductor sector is holding up thanks to the strength of structural demand. Over one year, STMicroelectronics is still posting a gain of 88.26%, illustrating the amplitude of the cycle covered, even though the decline of 33.2% over three months underscores the severity of the recent correction. Support at €41.74 constitutes the first level to hold in case of a session reversal.
