Ferrari NV (RACE) shares plummeted 5.12% in Monday's trading session, as the luxury automotive manufacturer found itself caught in a broader luxury sector sell-off. The steep decline comes as investors reassess their positions in high-end consumer goods companies amid concerns over potential new US tariffs and shifting market dynamics.

The luxury sector has been experiencing a mass stock sell-off since April 2, with even the strongest brands feeling the impact. Ferrari, which had previously shown resilience with its stock rising by more than 156% over the past five years, was not immune to the market pressure. The company's shares fell by nearly 7% in early trades, mirroring the downward trend seen across the luxury goods market.

Analysts attribute the sell-off to several factors, including the possibility of new tariffs imposed by the Trump administration and a reassessment of growth prospects in key markets. Kathleen Brooks, research director at XTB, noted, "There are heavy losses for the luxury sector. Investors are still seeking out areas of safety, including utilities, real estate, healthcare and consumer staples." The US market, previously viewed as the main growth driver for luxury brands in 2025, is now under scrutiny as investors weigh the potential impact of trade policies on high-end goods manufacturers like Ferrari.