Global Markets Surge on Strong Tech Earnings, Israeli Stocks Follow

Global stock markets are experiencing a positive sentiment, driven by robust earnings reports from major technology companies and a general trend of increased investment in equities. The Nasdaq Composite closed at an all-time high, defying concerns over rising interest rates, inflation, and the uncertain returns from massive AI investments. Despite geopolitical tensions, rising fuel prices, and a significant US national debt exceeding $40 trillion, the market's upward momentum continues.

The positive trend is fueled by impressive profit growth, estimated at around 15% for most S&P 500 companies. This has led to a global rush into stock markets, with the US exchange being a primary destination. Investors are seeing substantial returns, with some achieving gains of hundreds of percent.

Asian markets are also reflecting this optimism. South Korea's KOSPI has seen significant gains, particularly in memory chip stocks which have surged hundreds of percent, drawing much of the Korean population into profitable investments. Japan's market is also rising, contributing to the widespread positive sentiment across global markets.

Tel Aviv's stock exchange is also experiencing gains this month, with its main indices nearing previous highs. Dual-listed Israeli stocks are showing slight increases. Notably, NextVision has been the top-performing stock in the TA-35 index, jumping over 14% this month after a period of decline, attributed to its reasonable price-to-earnings multiples as a defense company. The Tel Aviv Stock Exchange itself also saw gains after issuing a positive five-year forecast. Teva Pharmaceuticals is up nearly 10% for the month, though it is expected to open lower today due to negative arbitrage.

Local Israeli "Treasury" stocks, such as Zooz Strategy and Tactona, have benefited from a cryptocurrency market recovery, rising up to 10% after sharp declines. Zooz, however, is still significantly below its average Bitcoin purchase price of $116,000, with unrealized losses of approximately $30 million on its digital assets in the first half of the year. Tactona, operating directly in digital assets, is also seeing improved sentiment, though its stock has been under pressure due to the crypto market's downturn.

In other Israeli market news, Nice surged 9% and Tower Semiconductor rose 8%. The Tel Aviv Stock Exchange experienced its strongest day in history, while banks lost 1.3%. The main indices closed in positive territory.