Global Tech Stocks Tumble, Dragging Israeli Shares Down
Translated & summarized from Bizportal by baba
Global markets are anticipating a negative opening, with major tech stocks like Intel and Amazon reporting disappointing results and forecasts, leading to significant drops in their stock prices. This downturn is expected to pull down shares on the Tel Aviv Stock Exchange, particularly for tech companies like Tower Semiconductor and Camtek. While some Israeli companies like Teva and Elbit Systems showed positive performance in New York, the overall sentiment is bearish due to the global tech sell-off. The cryptocurrency market is also affected, with Bitcoin trading lower after a major breach at the Binance exchange.
The story in 6 lines · by baba
- Global markets face a negative opening as Intel and Amazon report weak forecasts, impacting futures.
- Intel's stock plummets approximately 23% in after-hours trading due to a disappointing outlook.
- Amazon's stock drops about 7.3% after missing revenue and earnings expectations.
- South Korea's Kospi index plunges 5.8% amid the global tech sell-off.
- Israeli tech stocks Tower Semiconductor and Camtek are expected to open lower in Tel Aviv.
- Bitcoin trades around $78,500 following a major breach at the Binance crypto exchange.
Global markets are bracing for a negative opening, with futures on the Nasdaq down 2% and the S&P 500 down 0.9%. In Asia, the South Korean Kospi plunged 5.8%, following weak forecasts from tech giants Intel and Amazon, which added to the fallout from Alphabet's earlier decline. This global downturn is expected to impact the Tel Aviv Stock Exchange, with futures indicating a negative start for Israeli companies.
Several Israeli tech stocks listed on Nasdaq are showing significant pre-market weakness. Tower Semiconductor and Camtek are anticipated to open lower, while Teva and Palo Alto Networks are expected to see positive openings. Tower Semiconductor, which closed down 2.9% in New York, is falling an additional 5.6% in after-hours trading. Camtek is down 1.6% from its Nasdaq close and weakening another 5.1% in late trading. Nova is also seeing a roughly 1.7% drop in after-hours trading, with all three companies having experienced significant declines in the past week.
In contrast, Teva Pharmaceuticals saw a 3.8% jump on Wall Street, signaling a potential positive gap on the Tel Aviv exchange. Elbit Systems also climbed 3.6% in New York, indicating a modest positive gap. Nice experienced a 2.6% drop in New York, but its performance in Tel Aviv was worse, suggesting a positive gap. Palo Alto Networks, despite a 6.5% drop in Tel Aviv, is showing a positive gap in New York, though this is narrowing in after-hours trading.
The significant market movements are largely attributed to disappointing financial reports and forecasts from major tech companies. Intel is experiencing a massive after-hours drop of approximately 23%, despite a 21% revenue increase in the third quarter. Its fourth-quarter forecast fell short of expectations, exacerbated by a production halt at its Kiryat Gat facility, which is estimated to cost $300 million. Amazon also saw a substantial fall of about 7.3% in after-hours trading, as its revenue and earnings per share missed expectations, alongside a surge in capital expenditures.
These corporate results have had a ripple effect across global markets. The Nasdaq fell 1.4% and the S&P 500 lost 0.3% on the previous day's trading. Alphabet's stock plummeted 12.6%, its steepest daily drop ever, following a negative free cash flow. Other tech stocks like Reddit, Twilio, Roblox, and Stryker also saw significant declines in after-hours trading. In Asia, besides the Kospi's sharp fall, Tokyo's Nikkei dropped 2.4% and Taiwan's stock index weakened by 2.5%. Hong Kong's Hang Seng was an exception, rising 1.1%. Meanwhile, Bitcoin is trading around $78,500 after Binance, the world's largest cryptocurrency exchange, suspended deposits and withdrawals due to a breach affecting assets worth approximately $6.3 billion.
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