Economy

Wall Street suffered its worst session in three months as tech and AI shares tumbled, driven by inflation concerns and massive infrastructure spending fears.

Israel's Knesset Finance Committee approved a regulatory fix enabling credit card companies to issue tradable CoCo bonds, cutting funding costs and boosting loan competition.

The S&P 500 bull market marks its fourth anniversary with a 118% gain, driven by corporate earnings and tech investments. While historical data suggests further growth, analysts warn of risks from rising bond yields and high valuations.

New York City Comptroller Mark Levine reversed his campaign promise to resume municipal pension investments in Israel bonds, citing technical and financial constraints.

Despite a decline in bank investment advisor positions, Israeli capital in advised portfolios reached a peak of 485.6 billion shekels, signaling a shift to independent and external management.

American hedge fund Community Fund, led by Jeremy Blank, bought 23 million NIS worth of Bazan shares after a drop caused by facility pollution, securing a quick profit.

Tax Authority Director Shay Aharonovich warned at a Tel Aviv conference that 2027-2028 will face deep fiscal challenges due to defense spending, calling for structural tax reforms rather than VAT hikes.

Forbes' real-time billionaire ranking reveals that six of the ten richest people on Earth are Jewish, holding nearly 46% of total top-tier global wealth, largely driven by tech sector dominance.

At Robinhood's Hood Summit in Houston, retail investors celebrating massive portfolio gains contrasted sharply with Wall Street professionals worried about surging bond yields and market risks.

Asian markets traded mixed as investors awaited US inflation data, while China's producer prices surged by 5% in September amid rising fuel costs and oil above $106.

A new TASE analysis of past election cycles reveals that Israeli stock markets typically price in political uncertainty ahead of the vote, with post-election returns showing rapid recovery despite parliamentary stalemates.

September's CPI is expected to drop by 0.2%–0.3%, yet annual inflation will likely rise to 1.8%. Consequently, market analysts project the Bank of Israel will hold interest rates steady at 3.25%.

The Tel Aviv Stock Exchange approaches its semi-annual index update, with Doral and El Al poised to enter the TA-35 index while Damri, Shufersal, and Kenon face potential exclusion.

Defense stocks on the Tel Aviv Stock Exchange, which soared during recent conflicts, have seen a significant reversal, dropping about 20% over the past three months as valuations face correction.

Julius Baer's weekly review covers Democratic momentum in US midterm prediction markets, robust Wall Street earnings growth, and the ongoing AI pricing war testing business models.

France's sovereign bond yields have hit 4.9% amid a worsening debt crisis, sparking fears of a eurozone bailout. With debt projected to exceed 120% of GDP, all eyes are on the ECB.

Fitch Ratings maintains Israel's credit rating outlook at negative due to rising public debt and war risks, warning of potential growth impacts.

Discount Bank's weekly review highlights stabilizing bond markets, persistent fiscal concerns in France, and continued resilience in Israel's high-tech sector despite ongoing geopolitical and economic uncertainties.

U.S. September 2026 CPI data set for release points to a potential inflation acceleration to 3.7%, pressuring the Federal Reserve ahead of its upcoming rate decision.

Psagot Investment House expects the Bank of Israel to hold interest rates steady at its next meeting, awaiting post-election fiscal clarity despite moderating wage growth and rising consumer spending.

Bank Hapoalim released a market review highlighting tech sector resilience driven by AI investments, contrasted with rising bond yields and economic pressures in global and local markets.

The US dollar edges up against the shekel as global currencies fluctuate. Analysts attribute local currency strength to institutional hedging flows despite expectations of an upcoming interest rate cut.

Asian tech stocks plunged sharply following Wall Street losses and renewed competition from Chinese chipmaker CXMT. SK Hynix fell 9% and Samsung lost 8%, while South Korea triggered a trading sidecar as markets awaited key US bank earnings.

The IMF has raised Israel's 2026 growth forecast to 4.5%, while lowering projected inflation to 1.8%, as global markets grapple with energy shocks and rising public debt.

A Julius Baer analysis reveals growing financial risks and widening yield spreads among major cloud companies as capital expenditures outpace cash flow in the AI race.

Menora Mivtachim investment manager Oren Montal advises long-term investors to avoid market timing despite recent sharp gains, recommending a diversified general portfolio with high dollar yields and foreign currency hedging.

U.S. bond yields hit 24-year highs as markets brace for key inflation data and Federal Reserve policy updates amid ongoing geopolitical and trade tensions.

Wall Street closed mixed on Monday as semiconductor stocks slumped amid new Chinese competition, while energy shares hit record highs. Investors now eye major bank earnings.

McDonald's stock has plunged over 30% from its March peak amid weakening US sales and rising costs. Despite an $8.5 billion investment plan, investors remain cautious ahead of the upcoming earnings report.

Israeli investment house Pasternak Gilboa reports soaring global bond yields alongside record-breaking US stock markets driven by tech and AI, contrasted by a slumping Tel Aviv exchange.

The Tel Aviv Stock Exchange posted weekly declines amid political uncertainty ahead of the Israeli elections, while foreign investors led net purchases and the shekel strengthened.

Robert Hall and Michael Woodford won the Nobel Prize in Economics for pioneering research on the microfoundations of macroeconomic stabilization and market expectations.

Financial and insurance stocks on the Tel Aviv Stock Exchange are sliding toward correction territory amid rising bond yields, security concerns, and political uncertainty ahead of the upcoming elections.

The Tel Aviv Stock Exchange opened the week with slight gains on Monday, led by Electra Real Estate surging 14.22%, while Gilat dropped 8.04%.

Weekly digital wallet usage in Israel surged to 47% in 2025 as cash usage dropped to 48%. The Bank of Israel warns that declining cash infrastructure could limit accessibility and raise costs.

Financial experts at the Globes Next Gen Investors Conference analyzed market trends, artificial intelligence investments, and asset allocation between Wall Street and Tel Aviv.

Alphabet, Google's parent company, relies on search ads and cloud growth while expanding AI investments. The stock trades under GOOGL and GOOG with a quarterly dividend.

AMD reported strong Q2 2026 results with earnings of $1.66 per share, yet its stock dropped 8% amid high AI expectations and shifting data center metrics.

Microsoft reports strong Q4 2026 results as Azure annual sales surpass 100 billion dollars, driven by cloud expansion and AI integration through Copilot.

Apple reported Q3 2026 results exceeding expectations, yet its stock dropped $300 billion in market value following a cautious outlook driven by component shortages.