Full coverage· Economy· Updated
Election Results Shock Investors, Triggering Market Plunge and Dollar Surge
The Israeli stock market plunged and the shekel weakened sharply on Wednesday, October 28, 2026, following inconclusive election results that point to prolonged political uncertainty. The market reaction reversed gains made earlier in the week, when investor optimism and high voter turnout had driven a market rally and strengthened the local currency.
4 newsrooms · 2 languages · since
What happened
- 01The Israeli shekel weakened to 3.09 against the US dollar on Wednesday, reversing a previous appreciation to 3.02 shekels on election day.
- 02The Tel Aviv Stock Exchange fell sharply on Wednesday, with the TA 35 index dropping 1.5% and the TA 90 index falling over 3%.
- 03Preliminary election results showed no clear majority for either the change bloc or the Netanyahu bloc, raising fears of political stalemate.
- 04The insurance, real estate, and construction sectors suffered the heaviest losses on the stock exchange, with declines exceeding 4%.
- 05The euro rose against the shekel on Wednesday, trading above 3.43 shekels while the global dollar index remained stable.
- 06According to Globes, the stock market's fear index spiked by 30% as long-term government bonds fell following the election results.
- 07According to TheMarker, investors are concerned about potential economic sanctions, defense budget overruns, and the lack of ministerial accountability.
By Wednesday morning, the shekel had weakened to 3.09 against the US dollar, recovering all losses the dollar incurred on election day when it had fallen to 3.02 shekels. The euro also rose, trading above 3.43 shekels. On the Tel Aviv Stock Exchange, the main TA 35 index fell 1.5%, the TA 125 dropped about 2%, and the TA 90 index fell over 3%. The steepest declines were recorded in the insurance, real estate, and construction sectors, which fell more than 4%, while the banking index dropped 2.5%.
According to TheMarker, the market volatility reflects investor concern as neither the "change bloc" nor the "Netanyahu bloc" secured a decisive victory. The potential for political stalemate and governmental paralysis has raised fears over the inability to pass a state budget, delays in infrastructure projects, and a continued freeze in the housing market. Additionally, TheMarker reported that Western investors are concerned about potential economic sanctions and Prime Minister Netanyahu's recent statements on cryptocurrency.
Summarized by baba from the reports of 4 newsrooms. Updated
Latest report: Globes. Read Globes’s originalThe coverage
4 newsrooms on this story
Who covered it
- LeftNone
- Centre1
- RightNone
- HarediNone
- ArabNone
- Other3
