Tel Aviv Stocks Open Lower as US Midterms Deal Setback to Trump
The Tel Aviv Stock Exchange opened lower amid adverse reactions to US midterm election results pointing to major setbacks for President Donald Trump. Meanwhile, markets digest corporate earnings from AMD and NICE Systems alongside upcoming US employment data.
The Tel Aviv Stock Exchange opened lower today, driven by global market reactions to the US midterm elections, which point to a major setback for President Donald Trump and the Republican Party. Asian markets traded down sharply, with Japan's Nikkei 215 dropping 3% and South Korea's Kospi losing 1.6%.
Wall Street closed mixed in the previous session. The Nasdaq rose 0.8% and the S&P 500 added 0.4%, while the Dow Jones fell 0.4%. Following the closing bell, Advanced Micro Devices (AMD) reported quarterly revenue of $13.4 billion, a 45% increase year-over-year, alongside a 97% surge in data center revenue.
Key US Macro Data Awaited
Investors are closely monitoring upcoming US economic indicators. The ADP private-sector employment report for October and the ISM Services Index are scheduled for release later today ahead of the Tel Aviv market close. These figures are expected to trigger immediate responses in the US dollar and Treasury yields during local trading hours.
In the previous Tel Aviv session, the TA-35 index rose 0.29%, while the TA-125 index remained virtually unchanged. The banking sector advanced by roughly 2%, whereas the real estate index declined by 1.9%. Tech stocks are in particular focus this morning amid broader downward pressure.
Teva Pharmaceutical Industries gained 3.75% yesterday following a mixed earnings report. While the company's three core proprietary drugs grew by a combined 33%, overall revenues dipped 2% due to weakness in its generic drug division.
NICE Systems shares tumbled 7.07% on a heavy trading volume of 67.8 million shekels. Reports indicate the software company is laying off approximately 500 employees, representing about 5% of its workforce. The stock had previously dropped 5.45% in New York trading.
Enlight Renewable Energy declined 2.13% with a trading volume of 95.9 million shekels, despite reporting a 40% jump in quarterly revenues and raising its annual revenue forecast to $810 million to $830 million.
Tower Semiconductor dropped 0.20% in Tel Aviv but rallied 4.98% in New York after releasing record results and a forward-looking revenue projection of approximately $2 billion annually.
US Midterms Deliver Blow to Trump
The US midterm elections have dealt a significant blow to President Donald Trump and the Republican Party. According to US media projections, the Democrats have secured a majority in the Senate and are closing in on control of the House of Representatives.
Notable surprises included Democratic victories in Texas, South Carolina, Kansas, and Ohio—traditionally Republican strongholds. The outcome reflects voter discontent regarding economic conditions, the cost of living, and the ongoing conflict involving Iran. Democratic control of both congressional chambers is expected to constrain Trump's legislative agenda, heightening the risk of political gridlock in Washington.
