Tel Aviv Stock Exchange Plummets Amid Global Market Sell-Off
Translated & summarized from Calcalist by baba
The Tel Aviv Stock Exchange saw major indices fall sharply on Tuesday, with the TA 35 down 3.7% and defense stocks dropping 7%, mirroring a global market sell-off. Significant losses were also recorded on Wall Street and in Asian markets, with the Nasdaq experiencing its worst day since April 2025. Concerns over data center investment slowdowns heavily impacted AI and chip stocks.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange's TA 35 index dropped 3.7% amid a global market downturn.
- Defense stocks on the Tel Aviv exchange fell by 7% on Tuesday.
- The Nasdaq Composite experienced its worst trading day since April 2025, falling 5.5%.
- AI and chip stocks saw significant losses due to fears of a data center investment slowdown.
- Global markets in Asia also experienced substantial declines on Tuesday.
The Tel Aviv Stock Exchange experienced a significant downturn on Tuesday, with major indices closing sharply lower following a global market rout. The TA 35 index plunged 3.7%, while the TA 125 index lost 3.4%. Defense stocks were particularly hard-hit, falling 7%, and the insurance and technology indices dropped 5% and 4.8% respectively. Among individual stocks, Camtek shed 8.6%, Next Vision fell 8.5%, and Tower and Palo Alto each dropped 8.3%. Even bank stocks were not immune, with the sector index declining 2.8%.
This decline on the Tel Aviv exchange occurred before the significant drops seen on Wall Street and in Asian markets. The Nikkei index in Japan plummeted 6%, entering bear market territory, while the KOSPI in South Korea dropped 5%, the Hang Seng in Hong Kong lost 1.2%, and Shanghai shed 1%.
Overnight, the Nasdaq Composite saw its worst day since April 2025, crashing 5.5%, with chip stocks experiencing even steeper declines of up to 17%. The Dow Jones fell 3.4%, and the S&P 500 lost 4.4%. These losses erased gains made in the aftermath of the US midterm elections. The fear of a slowdown in data center investments triggered a wave of selling in artificial intelligence stocks, with Nvidia down 9%, Broadcom off 10%, and Micron plummeting 17.5%. The Nasdaq and Russell 2000 indices entered correction territory, and the VIX, a measure of market volatility, surged 62%.
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