Tel Aviv Stock Exchange Faces Negative Month Amid Global Tech Slump
Translated & summarized from Calcalist by baba
The Tel Aviv Stock Exchange is set to finish October with losses, influenced by a global decline in technology stocks. Major US tech companies like Intel, Amazon, and Alphabet reported disappointing earnings and forecasts, leading to significant stock drops. While the Israeli market saw minor gains on Thursday, the broader monthly trend for the TA-35 and TA-125 indices is negative. The tech sector globally and in Israel is particularly affected by these market pressures.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange is expected to end October with losses, mirroring global tech downturn.
- US tech giants Intel, Amazon, and Alphabet reported weak earnings, causing significant stock drops.
- Futures on Nasdaq and S&P 500 showed declines, impacting the opening of the trading day.
- The TA-35 index has fallen 1.4% and TA-125 index has lost 1.6% in October.
- Insurance sector stocks in Tel Aviv saw a notable monthly decline of 7.1%.
The Tel Aviv Stock Exchange is poised to end October with losses, mirroring a downturn in global technology stocks. The final trading day of the week opened with futures on New York's leading indices showing declines, particularly in tech shares. Asian markets also experienced a mixed trend, with technology stocks weakening following disappointing earnings reports from major US companies.
Futures on the Nasdaq fell 1.8%, while S&P 500 futures dropped 0.8%. The Dow Jones futures saw a minimal decline. This follows significant drops in US tech giants after their earnings announcements: Intel plummeted 23.2% in after-hours trading due to a weak forecast and a slowdown in the PC market, and Amazon lost 6.8% after its third-quarter profit and revenue fell short of expectations. Alphabet experienced its worst trading day ever, dropping 12.6% after its earnings report.
On Wednesday, Wall Street closed lower after three days of gains, with the Nasdaq down 1.4% and the Dow Jones and S&P 500 losing 0.3%. The Tel Aviv Stock Exchange (TASE) itself saw a volatile trading day on Thursday, closing with slight gains. The TA-35 index rose 0.3% and the TA-125 index increased by 0.1%, after fluctuating throughout the day. Sector-wise, insurance stocks (TA-Insurance) fell 2.4%, technology and information services (TA-Communications and Information Technologies) dropped 1.3%, and real estate (TA-Real Estate) weakened by 0.5%. Conversely, banking (TA-Banks) gained 0.8%, and oil and gas (TA-Oil and Gas) climbed 0.9%. The technology index (TA-Technology) saw a modest gain of 0.2%.
Year-to-date, the TA-35 index has fallen 1.4% and the TA-125 index has lost 1.6% as of Thursday's close. The insurance index has been a notable decliner, down 7.1% for the month, while the oil and gas index has gained 5.1%. In New York, the Nasdaq is on track for a 2.5% monthly decline, while the S&P 500 and Dow Jones are heading for gains of 0.9% and 2.8% respectively.
