Israeli Stocks Brace for Negative Open Amid Global Market Slump
Translated & summarized from Bizportal by baba
Israeli stocks are predicted to open negatively on Sunday due to a global market downturn, with semiconductors expected to lead the decline. Despite reassurances from tech leaders like Nvidia's CEO, investors are advised to be cautious. Defense stocks are showing resilience after recent losses, while the dollar continues to strengthen against the shekel.
The story in 6 lines · by baba
- Israeli stocks are expected to open negatively on Sunday, following Wall Street's 2% drop.
- Tower Semiconductor is predicted to fall 7% and Palo Alto Networks by 8% at the opening.
- Nvidia's CEO reassured investors that AI stock declines are temporary.
- Defense stocks are showing resilience, with Elbit Systems returning with a positive gap.
- The dollar is strengthening, with institutional investors increasing their holdings.
- South Korea's Finance Minister expects a rally in memory chip stocks to continue until 2027.
Israeli stocks are expected to open lower on Sunday, mirroring a significant downturn on Wall Street last Friday, with dual-listed shares returning with an aggregate negative gap of 0.8%. The opening in Tel Aviv is anticipated to be negative, particularly in the semiconductor sector, with Tower Semiconductor expected to drop 7% and Palo Alto Networks by approximately 8%.
Despite the global market weakness, there are attempts to calm investors. The South Korean Minister of Finance expressed confidence that the rally in memory chip stocks would continue until at least the end of 2027, following a crash in the sector. Similarly, the CEO of Nvidia reassured investors that declines in AI stocks are temporary and the revolution is still in its early stages. However, the article advises caution regarding these reassurances, suggesting investors examine the underlying motives.
In contrast to the expected tech sector decline, defense stocks, which have lost nearly 40% of their value in recent months, are showing resilience. Elbit Systems is returning with a positive gap, and defense stocks generally surged last week despite the Nasdaq's fall. Pharmaceutical stocks are also noted, with Teva expected to trade near zero, while Wall Street's decline has seen money move into companies like Eli Lilly and Merck.
The strengthening dollar is also a point of interest, as it has been rising in recent weeks. This trend is attributed to institutional investors increasing their dollar holdings to maintain exposure as Wall Street falls. The article will provide further updates.
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