STOXX 600 Dips as Stellantis Plunges on EV Plan Cut

STOXX 600 Declines on Stellantis and Tech Sector Weakness

European markets experienced a downturn, with the pan-European STOXX 600 index falling 0.2% to 610.28 points. The decline was primarily driven by a significant drop in automaker Stellantis's shares and continued weakness in the technology sector.

Sector Performance Highlights Market Volatility

The auto sector was the hardest hit, sliding 2.4% after Stellantis announced approximately €22.2 billion in charges related to scaling back its electric-vehicle development. This news caused Stellantis shares to tank 14.4%. Concurrently, technology stocks slipped by 1%, marking a significant weekly drop due to concerns over AI's impact and increased spending plans from major US tech firms.

Contrasting Fortunes in Banking and Pharma

Despite the broader market downturn, some stocks posted strong gains. French lender Societe Generale climbed 6.3% after raising its 2026 profitability target and exceeding fourth-quarter profit expectations. Similarly, pharmaceutical giant Novo Nordisk saw its shares rise 4.2% following favorable regulatory news from the US Food and Drug Administration.

Mixed Signals Shape European Market Outlook

The European market ends the week on a cautious note. While disappointing corporate earnings from key industrial players like Stellantis create downward pressure, strong performance in banking and pharmaceuticals provides some balance. Investors will continue to monitor corporate earnings and tech sector developments closely.

FAQ

Q: Why did Stellantis's stock price fall sharply?
A: Stellantis shares dropped 14.4% after the company booked charges of €22.2 billion due to scaling down its electric-vehicle development plans.

Q: Which index reflects the overall European market performance in this report?
A: The pan-European STOXX 600 index, which was reported to be down 0.2%.

Source: Investing.com