CAC 40 Slips to 8,390 on AI Uncertainty After Rally

The CAC 40 edged 0.55% lower to close at 8,390 on June 26 as technology stocks sold off amid concerns over stretched AI valuations and rising semiconductor costs. The move reversed recent gains driven by the U.S.-Iran peace agreement and Brent crude’s drop below $83, which had lifted the index to a three-month high near 8,465. Earlier in the period, weak Q1 GDP, persistent services contraction, and Middle East tensions created volatility, while SoftBank’s €75 billion AI investment provided a longer-term positive catalyst. June flash PMIs showed modest improvement but remained below 50, signaling ongoing economic contraction.