Tel Aviv Stock Exchange Opens Higher After Market Plunge
Translated & summarized from Ynet by baba
The Tel Aviv Stock Exchange opened mixed on Friday after a significant market crash on Thursday, with the TA-35 index rising slightly. The shekel weakened against the dollar, reaching 3.21. The previous day saw sharp declines on both the Tel Aviv and Wall Street exchanges, with technology stocks leading the losses amid concerns about AI investment and data center regulations.
The story in 5 lines · by baba
- Tel Aviv Stock Exchange opened mixed on Friday after Thursday's market crash.
- The TA-35 index rose 0.11%, TA-125 gained 0.07%, and TA-90 fell 0.08% on Friday.
- The shekel weakened against the dollar, trading around 3.21 shekels.
- The TA-35 index fell 3.69% on Thursday, completing a 5.6% two-day loss.
- US markets also saw sharp declines, with the Nasdaq down 5.52%.
The Tel Aviv Stock Exchange opened on Friday with mixed trading, following a significant market downturn experienced the previous day in both Israeli and US markets. The TA-35 index saw a slight increase of 0.11%, the TA-125 index rose by 0.07%, while the TA-90 index declined by 0.08%. Sector-specific indices showed varied performance: the defense index dropped 1.03%, technology fell 0.25%, and insurance gained 0.41%. The banking index increased by 0.29%, real estate by 0.24%, and finance by 0.34%.
In the foreign exchange market, the US dollar continued to strengthen against the Israeli shekel, trading around 3.21 shekels. The euro remained stable at approximately 3.6 shekels. This follows a sharp weakening of the shekel on Thursday, with the dollar reaching a high of 3.2026 in continuous trading.
The previous day, the Tel Aviv Stock Exchange closed with sharp declines for the second consecutive day. The TA-35 index plummeted by 3.69%, adding to a 1.96% loss from Wednesday, resulting in a cumulative drop of about 5.6% over two days. The TA-125 index fell 3.38% and the TA-90 index decreased by 2.23%. The defense index led the losses with a 7.09% drop, and the insurance index lost 5.07%.
Wall Street also experienced a significant sell-off, with the Nasdaq Composite plunging 5.52%, the S&P 500 losing 4.3%, and the Dow Jones declining by 3.44%. Technology and semiconductor stocks were particularly hard hit, attributed to concerns over a slowdown in artificial intelligence infrastructure investment and potential restrictions on data center construction following the US midterm election results. The VIX, a measure of expected volatility for the S&P 500, surged approximately 70% to around 28 points, reflecting heightened market uncertainty.
