Trading in Tel Aviv is set to open Thursday after a volatile week, with the local market trying to recover from sharp Tuesday losses that pushed the TA-125 into a correction for the first time since October 2023. On Wednesday, the selloff eased somewhat, as the TA-35 rose about 0.2%, the TA-90 gained about 0.5%, and turnover reached 5.26 billion shekels. Sentiment remains mixed globally, with dual-listed chip stocks still in focus after Micron’s overnight results in New York. On Wednesday in Tel Aviv, the biotech index jumped 5.8% led by Plasאנמור after a strategic U.S. deal with Ouma Health, while real estate and construction stocks recovered about 2% on expectations of a July rate cut. Insurance stocks rose nearly 3%, technology fell 0.9%, and chip names including Camtek, Tower and Nova finished lower. Consumer stock Globrands plunged about 46% after ending its JTI distribution deal, while Diplomat gained on expected annual revenue of about 2.2 billion shekels. Delek Group expanded its buyback plan by 100 million shekels, Ratio Petroleum agreed to buy London-based Pharos for 163 million dollars, and ICL announced a potash export deal to India worth 144 million to 163 million dollars.
Bonds also moved higher, with Israeli government bond yields falling across the curve. The 3-month yield dropped to 3.227%, the 5-year to 3.396%, the 10-year to 3.667%, and the 20-year to 3.959%. In the U.S., Treasury yields also fell sharply, with the 10-year at 4.403% and the 30-year at 4.856%, helped by lower oil prices and easing geopolitical tensions.
In currencies and commodities, the dollar slipped to 2.99 shekels after briefly nearing 3 shekels earlier this month, while the euro was fixed at 3.39 shekels. Bank of America recommended buying the dollar against the shekel for three months, targeting 3.14 shekels. Oil fell about 4%, with WTI briefly below 70 dollars and Brent at 73.83 dollars a barrel. Trump accused oil companies of keeping gasoline prices too high and said he ordered the Justice Department to look into it. Gold dipped below 4,000 dollars an ounce for the first time since November, and bitcoin fell below 60,000 dollars before rebounding more than 3% to about 61,541 dollars.
Israel’s macro backdrop remains constructive, according to IBI chief economist Rafi Gozlan, who said the ceasefire has improved business sentiment and that consumer spending, industrial production, trade and labor-market indicators have all strengthened. But both IBI and Harel see continued pressure on housing prices because supply is rising faster than demand, though lower rates could soften the decline. In the U.S., investors await May PCE inflation data at 15:30 Israel time, along with final first-quarter GDP, durable goods orders and jobless claims. Economists expect the PCE to rise 0.3% month on month and 4.1% year on year, while GDP is seen slowing to 1.6%.
Wall Street closed mixed Wednesday as tech and chip stocks stayed under pressure, though Micron later beat forecasts and jumped more than 10% after hours. JPMorgan raised its year-end S&P 500 target to 7,800 from 7,200, saying the market can keep rising but not in a straight line because of high expectations, larger equity supply and possible tighter monetary policy.
