Tel Aviv Stock Exchange Opens Amid Global Downturn and New Index Inclusion

The Tel Aviv Stock Exchange (TASE) is set to open with a negative sentiment influenced by global market declines. Wall Street closed lower yesterday, and Asian markets mostly trade down except for Chinese indexes. Dual-listed stocks on TASE show mixed arbitrage gaps, with Tower Semiconductor up about 4% and Nova down 3% following earnings reports. Kamtek is expected to rise 2%, while other dual-listed stocks show minor gaps.

Palo Alto Networks, the largest company on the TASE, joined the TA-35 and TA-125 indices last evening with a phased inclusion starting at 1.25% weight, increasing to full 5% by the third update. This move is part of the company’s dual listing and is expected to boost Israeli investor exposure to the cybersecurity giant. Yesterday’s TASE session ended slightly positive with the TA-35 up 0.3%, led by energy stocks rising 2%, followed by cleantech and biomed sectors. Ormat Technologies stood out after reporting increased Q2 revenues and profits, raising its 2026 revenue forecast to $1.15-1.2 billion.

In the US, Wall Street futures indicate slight declines amid rising oil prices and bond yields, driven by inflation concerns ahead of today’s US employment report. The Nasdaq fell slightly due to weaker-than-expected chip stocks despite strong earnings from Sandisk and Western Digital. The S&P 500 and Dow Jones also declined, with energy stocks like ExxonMobil and Chevron leading gains due to oil price surges. Geopolitical tensions in the Middle East, especially around the Strait of Hormuz, continue to push Brent crude above $83 per barrel. Iran’s state news agency released a draft plan to restrict shipping through the strait, potentially banning US and Israeli vessels.

US Treasury yields rose, with 10-year notes at 4.68% and 30-year at 5.23%, amid Federal Reserve officials’ support for further rate hikes to curb inflation. Economists expect today’s US jobs report to show an increase of 80,000 jobs in July, signaling a stable labor market. Meanwhile, Alphabet (Google) is considering raising up to $25 billion in US bonds to fund AI infrastructure investments.

In Asia, markets mostly trade lower except for Chinese indexes, which rose on stronger-than-expected export data. JP Morgan reports that recent tech stock declines do not signal an end to AI investments, with cloud giants continuing infrastructure spending through 2027. The Israeli shekel weakened to 3.01 against the dollar amid regional uncertainties. Overall, global markets remain cautious amid geopolitical risks and inflation pressures, with investors closely watching upcoming economic data and corporate earnings.