CAC 40 Stagnates as Tech Stocks Struggle

A Split Session Amid Interest Rate Tensions

The Paris index is moving backward, unable to make a decision. The external context remains heavy: in the United States, inflation accelerated to 3.7% year-on-year in September, above expectations, reigniting anticipations of prolonged high policy rates. This atmosphere affected Wall Street on Wednesday evening, where the Nasdaq 100 fell 2.02% at closing, and the S&P 500 dropped 1.11%. In Europe, the mood remains cautious: the DAX is down 0.45% during the session, and the STOXX 600 is down 0.27%, while the FTSE 100 is up 0.52%. Nervousness is noticeable: the VIX volatility index jumped more than 15% to 17.59. Despite this backdrop, dispersion remains favorable in Paris, with 28 stocks rising and 10 falling within the index.

Carrefour, Orange, and Publicis Boost the Index

Defensive and service stocks are leading the way. Carrefour registers the largest gain on the CAC 40, rising 2.38% to 16.55 euros. Telecommunications follow, with Orange gaining 2.32% to 14.34 euros, following the announcement of the launch of a 3,125 km submarine cable connecting Ireland to continental Europe without passing through the UK. Publicis Groupe progresses by 1.75% to 101.80 euros, driven by a 5% organic growth in the third quarter and a confirmed annual target, praised by several analysis firms. Bouygues gains 1.49% to 40.86 euros, after securing a flood prevention tunnel contract in Hong Kong, of which 94 million euros are awarded to the group. Danone rounds out the top performers with a 1.43% increase to 61.14 euros.

Semiconductors and Electric Sector Under Pressure

The bottom of the ranking tells the other side of the trading session, focusing on technology stocks and electrical equipment manufacturers. STMicroelectronics falls by 6.77% to 40.12 euros, making it the steepest decline of the day, amid a sector plagued by the downturn of tech stocks on the other side of the Atlantic. This is due to a widespread doubt surrounding AI-related companies.
Electrical equipment specialists follow the same trend: Legrand drops 4.17% to 129.70 euros, and Schneider Electric loses 4.08% to 253.60 euros. In the automotive sector, Stellantis slips 0.85% to 3.80 euros, following the release of its 1.3 million invoiced vehicles in the third quarter, a 1% decrease compared to the previous year. ArcelorMittal declines more modestly by 0.82% to 55.80 euros, despite JP Morgan's upward revision of its stock rating from neutral to overweight.