Tel Aviv Stock Exchange Opens Optimistic Amid US-Iran Talks and Strong Global Markets

The Tel Aviv Stock Exchange (TASE) is set to open with positive momentum, supported by optimism surrounding a potential US-Iran agreement, global market rallies, and falling oil prices. Overnight, Wall Street hit new highs led by technology stocks, with US President Donald Trump expressing confidence that negotiations with Iran are progressing well and a clearer picture on a deal is expected within 48 hours. Domestically, banks are in focus after the Bank of Israel's banking supervision released a draft circular allowing banks to adopt US accounting standards, potentially increasing their attractiveness to investors. Tower Semiconductor is expected to surge about 8% at the open following volatile trading and strong earnings reports, while Kamtek is also poised to rise around 6%. The TASE reported a 36% increase in revenues and an 81% jump in net profit in Q2, with El Al's earnings report anticipated today.

US bond markets saw yields decline ahead of upcoming employment data and amid expectations of a possible agreement to reopen the Strait of Hormuz. The 10-year US Treasury yield dropped to 4.66%, reflecting investor demand for bonds. In commodities and currencies, the Israeli shekel strengthened below 3 per dollar for the first time in a month, while the US dollar weakened. Brent crude fell 1.4% to $78.3 per barrel, and WTI dropped 1.7% to $74.5. The Japanese yen stabilized after government intervention, with US Treasury Secretary Scott BaSnt warning that yen weakness could cause competitive currency devaluations in Asia.

In the US stock market, technology and semiconductor stocks led gains, with Palantir soaring 29% after strong earnings and optimistic AI-related forecasts. Despite strong earnings beats, AMD shares fell 8.8% due to investor disappointment. Amazon shares declined 2% following Jeff Bezos’s plan to sell $4.1 billion worth of shares. JP Morgan highlighted that major tech stocks like Nvidia, Microsoft, Google, Apple, Amazon, Meta, and Tesla are currently undervalued, suggesting a potential 30% to 56% upside as AI investments begin to pay off.

Economists are closely watching the US July employment report expected later this week, with consensus forecasting 85,000 new jobs and stable unemployment. Market expectations remain for a possible interest rate hike in September, though some analysts predict rates will hold steady due to moderating core inflation and labor market data. The US trade deficit widened to $73.3 billion in June, exceeding forecasts.

Overall, the positive global economic signals, strong corporate earnings, and easing geopolitical tensions are expected to support a robust trading session in Tel Aviv and abroad.