Tel Aviv Stock Exchange to Open Amid US Midterm Election Results

The Tel Aviv Stock Exchange is expected to trade on Wednesday influenced by the results of the US midterm elections, which are indicating a significant defeat for Republicans and President Donald Trump. On Tuesday, the Nasdaq Composite rose 0.8% and the S&P 500 gained 0.4%, while the Dow Jones Industrial Average fell 0.4%. Following the market close, AMD reported quarterly revenues of $13.4 billion, a 45% increase, with data center revenues surging 97%. Asian markets saw declines, with Japan's Nikkei down 3% and South Korea's Kospi losing about 1.6%. Futures on the S&P 500 were down 0.5%, and Nasdaq futures fell over 0.6%.

Key US economic data, including the ADP private sector employment report for October and the ISM services index, are scheduled for release on Wednesday afternoon, potentially impacting the dollar and US bond yields during local trading hours. At Tuesday's close in Tel Aviv, the TA-35 index rose 0.29% and the TA-125 remained largely unchanged. The banks index climbed approximately 2%, while the real estate index dropped 1.9%.

Technology stocks are likely to be in focus due to the negative futures, but local news also presents points of interest. Teva Pharmaceuticals saw a 3.75% rise on Tuesday, despite a 2% overall revenue decrease attributed to weakness in generics, though its three main originator drugs grew 33%. Nice Inc. fell 7.07% on Tuesday on a trading volume of 67.8 million shekels, reportedly laying off about 500 employees (5% of its workforce), and its stock lost 5.45% in New York trading. Enlight Renewable Energy dropped 2.13% on Tuesday on 95.9 million shekels in volume, even after reporting 40% revenue growth and raising its annual forecast to $810-830 million.

Tower Semiconductor fell 0.20% in Tel Aviv but rose 4.98% in New York after reporting record results and a forecast of approximately $2 billion in annual revenues on Monday. The stock is expected to open with a positive arbitrage gap. The US midterm election results are shaping up as a significant setback for President Donald Trump and the Republican Party, with early projections showing Democrats gaining a Senate majority and nearing control of the House of Representatives. Democratic victories in traditionally Republican states like Texas and Ohio suggest voter dissatisfaction with the economy, cost of living, and the Iran policy. A Democratic Congress could hinder Trump's economic agenda, including tax and budget legislation, and increase the risk of political gridlock in Washington, though the president's veto power remains a factor.