Tel Aviv Stocks Open Lower as Tech Shares Lead Market Decline
Tel Aviv shares opened lower as the technology index dropped 1.9% amid Asian market sell-offs and chip stock declines. The exchange also prepares for a biannual index rebalancing expected to exceed 10 billion NIS in trading volume.
The Tel Aviv Stock Exchange opened the session with downward trends across major indices, driven by sharp declines in technology shares and ongoing Asian market pressures. The Tel Aviv 35 Index dropped 1.2%, while the Tel Aviv 125 Index lost 1.1%. The Tel Aviv Technology Index led the losses with a 1.9% fall, continuing a broader regional tech sell-off.
Chip and tech equities posted notable drops, with Next Vision sliding 4.5% and Camtek extending losses from the previous session to drop 4.3%. Palo Alto Networks fell 4% amid reports that the cybersecurity giant is in talks to acquire Israeli startup Clutch for approximately $500 million. Tower Semiconductor traded down 3.3%, while Elbit Systems lost 3.3% and El Al Israel Airlines weakened by 4% following the release of its financial statements.
Markets are also bracing for the biannual index rebalancing session, which is expected to generate massive trading volumes exceeding 10 billion NIS as exchange-traded funds adjust their holdings. Meanwhile, government bonds remained stable, with the 10-year Israeli bond yield standing at 4.121%.
The local downturn mirrors sharp losses across Asian exchanges, triggered by concerns over potential U.S. regulatory restrictions on data center infrastructure and artificial intelligence chip demand following political shifts in Washington.
