The CAC 40 declined by 0.4% to 8,341 on Friday, continuing the downward trend from the prior session as a widespread selloff in the semiconductor sector impacted global markets and exerted significant pressure on technology stocks. Concerns regarding the sector have reemerged in light of heightened expenditures on AI and inflated valuations.

Meanwhile, investors remained vigilant regarding the unfolding dynamics of the escalating US-Iran conflict, which exerted upward pressure on oil prices and rekindled concerns over inflation and the trajectory of interest rates. Markets largely anticipate that the European Central Bank will maintain current borrowing costs in the upcoming week, with the possibility of a final rate cut in September, coinciding with the release of updated quarterly projections by the ECB.

STMicroelectronics declined by 5.8%, followed by Airbus with a decrease of 1%, Schneider Electric at 2.3%, and Safran experiencing a drop of 1.4%. Luxury names such as LVMH, Hermès, and Kering also fell after Burberry underwhelmed investors with its results. For the week, the CAC 40 is poised to conclude with little variation.