Israeli Stocks Plunge, Dollar Hits 2026 High Amid Global Market Sell-off
Translated & summarized from Vesty by baba
The Tel Aviv Stock Exchange plummeted on Thursday, November 5, with the TA-35 index falling 3.69%, while the dollar reached a 2026 high of 3.2046 shekels. U.S. markets also dropped sharply, with the Nasdaq down 4%, amid investor fears of increased regulation on AI infrastructure. Israeli companies traded in the U.S., including Tower Semiconductor and Elbit Systems, experienced significant losses.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange's TA-35 index fell 3.69% on November 5, marking a poor trading day.
- The U.S. dollar reached a 2026 high of 3.2046 shekels against the Israeli shekel.
- U.S. stock markets, including the Nasdaq, S&P 500, and Dow Jones, saw sharp declines.
- Investor concerns over potential regulation on AI infrastructure after U.S. midterm election results fueled the sell-off.
- Israeli companies like Tower Semiconductor and Elbit Systems experienced significant stock price drops.
The Tel Aviv Stock Exchange experienced one of its worst trading days of the year on Thursday, November 5, with the main TA-35 index dropping 3.69%. This followed a 1.96% decline the previous day. Other major indices also saw significant losses, including the TA-125 (-3.38%), TA-90 (-2.23%), and TA-SME60 (-3.52%). Specific sectors were hit hard, with the defense index down 7.09%, insurance down 5.07%, technology down 4.78%, and finance down 3.99%. Among individual companies, Tower Semiconductor shares fell 8.35% and Elbit Systems shares dropped 7.77%.
Concurrently, the Israeli shekel weakened sharply against major foreign currencies. The dollar reached a 2026 high of 3.2046 shekels, compared to the official rate of 3.167 shekels. The euro also strengthened to around 3.60 shekels, up from its official rate of 3.5535 shekels.
Globally, U.S. stock markets experienced a sharp downturn after a rally the previous day, attributed to the Democratic Party's victories in the U.S. midterm elections. Investors sold off shares, particularly in artificial intelligence and semiconductor companies. The Nasdaq was down 4%, the S&P 500 by 2.8%, and the Dow Jones by 2.2%. The VIX fear index surged 23% to 20.5 points.
The sell-off was driven by investor concerns that increased regulation following the Democratic wins could hinder the development of data centers crucial for AI infrastructure. UBS analysts estimate that up to 30% of planned U.S. data center capacity growth by 2028 could be at risk. Chip manufacturers saw significant losses, with AMD and Micron down 13% each. Israeli companies traded in the U.S., such as Tower Semiconductor and Elbit Systems, also saw declines.
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