Ferrari NV (RACE) shares plunged 5.12% in pre-market trading on Monday, as the luxury automotive manufacturer became embroiled in a widespread sell-off affecting the entire luxury goods sector. This sharp decline comes as investors reassess their positions in high-end consumer brands amid changing market conditions.

The sell-off, which began on April 2, has impacted even the strongest luxury brands. Ferrari, known for its resilience in previous market downturns, has seen its stock fall by nearly 7% in early trades. This decline is part of a broader trend affecting the luxury market, with other notable brands such as Hermès, Burberry, Kering, and LVMH experiencing significant drops ranging from 12% to 20% since the start of the sell-off.

Analysts attribute this sector-wide decline to several factors, including concerns over slowing growth in key markets and potential trade tensions. The US market, previously viewed as the main growth driver for luxury goods in 2025, is now facing uncertainty due to potential tariff changes. As Kathleen Brooks, research director at XTB, noted, "Investors are still seeking out areas of safety, including utilities, real estate, healthcare and consumer staples," suggesting a shift away from luxury stocks perceived as riskier in the current economic climate.