Global Markets Mixed as Tech Stocks Soar, SpaceX Surges on Analyst Upgrade

Global markets experienced a mixed trading session, with Asian bourses showing varied performance. Tokyo and Hong Kong stocks climbed approximately 0.7%, while Seoul saw a 1% decline. China's market remained closed for a holiday.

On Wall Street, the new trading week began with a surge, pushing the Nasdaq to a new all-time high and the S&P 500 close to its August record. This occurred despite rising bond yields and high oil prices. Investors are now awaiting the Federal Reserve's September meeting minutes for clues on future monetary policy. The market currently prices in a negligible chance of an October interest rate hike.

Technology stocks led the gains on Wall Street, with notable increases in Microsoft, Meta, Broadcom, Tesla, and Nvidia. SpaceX shares were a standout, jumping over 7% to their highest level since June, following a "buy" recommendation from Morgan Stanley, which cited the stock as increasingly undervalued and set a price target of $300. This upgrade, coupled with anticipation for SpaceX's upcoming Starship test flight and third-quarter financial results, contributed to Elon Musk reportedly becoming a trillionaire again, with a net worth of $1.03 trillion.

Oil prices retreated, with Brent crude falling over 2% to briefly trade below $100 a barrel, and WTI down slightly around $89. The decline was attributed to the G7's decision to release 100 million barrels of diesel from emergency reserves and reports of recovering Middle Eastern oil exports.

The Israeli market closed mixed, with the TA-35 index rising slightly by 0.1% and the TA-90 index falling 1.4%. Dual-listed Israeli stocks are expected to return from Wall Street with a minor positive arbitrage gap of about 0.1%. Elbit Systems is projected to fall around 2.2%, while Formula Systems is expected to rise over 4%. Tower and Teva are also anticipated to see gains of approximately 2% and 1%, respectively. The construction index underperformed, dropping about 2.5%, influenced by rising US bond yields and expectations of further interest rate hikes, which complicate the Bank of Israel's easing trajectory. A further drag came from Aura's third-quarter housing sales data, which showed little change in the struggling real estate market.