CAC 40 slides as US jobs data and Israel‑Iran tension boost hawkish Fed outlook

France's CAC 40 index closed lower on Friday, slipping about 0.2% to around 8,200 points after the release of a strong U.S. non‑farm payrolls report. The data showed 172,000 private‑sector jobs added and unchanged unemployment at 4.3%, raising expectations that the Federal Reserve will adopt a more hawkish stance, with FedWatch estimating a roughly 70% chance of a rate hike by year‑end.

The market reaction was also shaped by renewed hostilities in the Middle East, as Israel carried out air strikes in response to Iranian missile launches, and Iran fired rockets toward Israel. These developments heightened risk aversion, contributing to declines in European semiconductor stocks such as Soitec (‑6.3%) and STMicroelectronics (‑5.9%). Airbus gained 1.1% after confirming May deliveries, while Air France‑KLM fell 1.2% following a downgrade. Across the Atlantic, major U.S. indices also fell, with the Dow down 1.35%, Nasdaq dropping 4.18%, and the S&P 500 slipping 2.64%.