FTSE MIB Closes Sharply Lower

The FTSE MIB declined 1.5% to close at 52,024 on Tuesday, as a global sell-off in technology stocks weighed on investor sentiment. Semiconductor firm STMicroelectronics led the decline, plunging near 8% amid concerns over elevated valuations in artificial intelligence-related companies and renewed market volatility. The automotive sector also weakened, with losses in Ferrari (-1.5%) and Stellantis (-6.8%). Banking and insurance stocks contributed to the market's decline, led by losses in Intesa Sanpaolo (-1.5%), UniCredit (-1.5%), Assicurazioni Generali (-0.8%), BPER Banca (-0.7%) and BMPS (-0.6%). Elsewhere, Prysmian declined 4.1%. Utilities were relatively resilient, with Enel and Terna advancing on the back of lower oil prices, although Snam ended the session in negative territory.

The FTSE MIB Index dropped 772 points or 1.46 percent on Tuesday to close at 52024 points. Losses were led by STMicroelectronics (-8.12%), Stellantis N.V. (-6.95%) and Prysmian (-4.28%).

The FTSE MIB fell more than 1% to around 52,000 on Tuesday, retreating from record levels to hit a one-week low. Semiconductor firm STMicroelectronics led losses, sliding over 6% as it tracked a global tech sell-off, as worries mounted among investors that the technology sector’s recent surge may have run ahead of fundamentals, with scrutiny intensifying over artificial intelligence-driven spending and elevated equity valuations. Other notable laggards included several banks, such as UniCredit (-0.9%), Intesa Sanpaolo (-0.8%), Assicurazioni Generali (-0.9%), Banco BPM (-1%), and FinecoBank (-1.8%). Auto stocks also came under pressure, with Ferrari down 1% and Stellantis falling 3%. Increased Fed rate-hike bets also weighed on sentiment, while markets kept track of developments in US-Iran peace negotiations.