Fed Chair Kevin Warsh's remarks curb Paris stock rally

Federal Reserve Chair Kevin Warsh, speaking at a meeting of central bankers in Portugal, warned that inflation remains "too high" and that the Fed’s 2% target is non‑negotiable. He signaled that interest rates may stay elevated or even rise further, dampening expectations of a rapid rate cut.

The comment sent the CAC 40 down 0.79%, closing at 8,337 points, a loss of 66.70 points. Defensive sectors fell, with Orange dropping 4.48% and the broader European telecom group declining. Schneider Electric slipped 3.07% after announcing a $3.1 billion acquisition of an AI‑software specialist, which the market viewed as costly.

Conversely, EssilorLuxottica rallied 5.46% after Meta’s surge on Wall Street, spurred by rumors of a new cloud‑computing offering. The mixed reactions illustrate investors adjusting to a backdrop of higher‑for‑long interest rates.