Towards the trading week: The event that will dictate the market direction
All eyes are on the reports of the most important company in the world, the barometer of AI trading. Tel Aviv concluded a mixed week as insurance surged and chips crashed. The local reporting season is entering its final stretch, with tensions against Iran in the background.
The trading week opens ahead of the biggest event in the global markets this month: Nvidia's reports, which will be published on Wednesday after the US market close. But let's start with what happened.
Friday was positive — TA 35 and 125 climbed up to 0.5% and the banks added 1.2%. Bezeq stood out with a 3.5% rise after raising its profit forecast for 2026, and the construction index jumped 2.5%. On the other hand, Diplomat fell 9% after a decline in revenue and profit.
But the weekly summary tells a story of a sharp split. TA 35 fell 0.7% for the week, while under the surface two sectors moved in opposite directions. Insurance surged 5% (Clal jumped 8.2%) thanks to strong reports, while chips crashed — Camtek fell 12.4%, Tower was cut by 10.5%, and Palo Alto fell 10.3%. The fall in chips is directly related to the fear ahead of Nvidia's reports and the global volatility in the sector.
This is, without a doubt, the main event of the week — and perhaps of the entire month. Nvidia, the most expensive company in the world and the synonymous name for the AI revolution, will publish reports on Wednesday after the close. Its report is considered a barometer of all artificial intelligence trading: the results and the forecast will determine if the huge investments of the giants in AI infrastructure are indeed translated into real demand for its chips.
The implications are very broad. A strong report and an optimistic forecast could reignite the rally in the entire chip sector, including the local dual-listed companies Tower, Nova, and Camtek — which suffered a difficult week. A disappointing report, on the other hand, could deepen the correction and drag down all technology. After we saw throughout the season that even excellent reports are not always enough when expectations are in the sky (Elbit, Next Vision, AMD), the bar for Nvidia is especially high.
In Tel Aviv, the reporting season is progressing to its end. Among the prominent names this week: Tidhar (real estate and construction), Fox (fashion retail), and three of the largest insurance companies — Phoenix, Menora, and Harel — whose reports will examine if the surge in the insurance sector is justified. Partner will also report and provide a picture of the communications market. After the strong rally in insurance, it is worth following if the reports will justify the pricing or lead to realization.
In the background, the tension against Iran continues to accompany the market. After the memorandum of understanding expired and oil climbed to the 90 dollar area, any escalation or calming can move oil prices, the shekel, and local oil and gas stocks. This is a volatile factor that remains relevant alongside the reports.
This week is dominated by one big event: Nvidia on Wednesday. For the Israeli saver, who is exposed to technology stocks through pension and advanced training funds, this report touches the portfolio directly — it will largely determine the direction of the chip sector in the coming weeks, both in Tel Aviv and in the world.
The split we saw this week — insurance up, chips down — is a reminder that the market is not a uniform block, and that different sectors can move in opposite directions in the same week. Whoever holds a balanced portfolio experiences the fluctuations with moderate intensity. Until Wednesday, it is likely that we will see caution in chips and dual-listed stocks, as the market "holds its breath" ahead of the report. Have a good trading week.
