Paris Stock Exchange Sees a Quiet Week Amid Fed Rate Decision Drama
- How Did the CAC 40 Perform This Week?
- What Was the Fed’s Move—and Why Did It Split Opinions?
- U.S. Indices: Why the Red Wave?
- Which French Stocks Stood Out?
- What’s Next for Markets?
- FAQ Section
The CAC 40 closed slightly lower (-0.21%) at 8,068.62 points, marking a second consecutive week of declines (-0.57% weekly, -0.67% cumulative). The Fed's 25-basis-point rate cut dominated headlines, but Oracle's cloud division woes and mixed U.S. indices stole the spotlight. French stocks like Abivax rallied, while Eutelsat and EssilorLuxottica stumbled. Here’s the full breakdown.
How Did the CAC 40 Perform This Week?
The Paris benchmark dipped 0.21% to 8,068.62 points on Friday, dragged down by late-session rumors about Oracle’s AI data center delays (blamed on labor and material shortages). For the week, the index fell 0.57%, extending losses after a 0.67% drop the prior week. "It’s a classic risk-off move," noted a BTCC analyst. "Investors are juggling Fed Optimism with sector-specific shocks."
What Was the Fed’s Move—and Why Did It Split Opinions?
As expected, the Fed cut rates by 25 bps, but cracks emerged: Governor Miran pushed for a 50-bps cut, while Goolsbee and Schmid dissented entirely. Jerome Powell’s "neutral zone" comment sparked debates—Brandywine Global’s Jack McIntyre called it "the meeting’s key takeaway." Meanwhile, Aberdeen’s RAY Sharma-Ong warned, "The Fed’s walking a tightrope with sticky inflation and a cooling labor market."
U.S. Indices: Why the Red Wave?
Oracle’s 11% Thursday plunge (after weak cloud earnings) hammered tech: Nasdaq tumbled 1.80% to 23,169, while the S&P 500 slid 1.16% to 6,820. The Dow fared slightly better (-0.47% to 48,474). TradingView charts show the Nasdaq’s worst single-day drop since October, with AI-related stocks bearing the brunt.
Which French Stocks Stood Out?
(+14% weekly) surged on Eli Lilly buyout rumors.flopped post-capital hike, andtanked as Google unveiled rival smart glasses to its Meta-collab pair. "French mid-caps are becoming a battleground for tech vs. traditional sectors," observed a BTCC market strategist.
What’s Next for Markets?
December’s unemployment and CPI data (due next week) could tip Fed expectations. "Until then, we’re in wait-and-see mode," said McIntyre. Historically, post-Fed rate cuts see volatile 30-day windows—CoinMarketCap data shows crypto often rallies in such phases, but equities face choppiness.
FAQ Section
Why did Oracle’s stock crash?
Oracle dropped 11% after reporting delays in its OpenAI data centers and underwhelming cloud revenue, spooking AI investors.
How many Fed members dissented on the rate decision?
Two: Goolsbee and Schmid voted against any cut, while Miran wanted a deeper 50-bps reduction.
Is the CAC 40 in correction territory now?
Not yet—the 0.67% two-week decline remains within normal fluctuations, though tech exposure raises risks.
