Friday | 9th of Cheshvan
5787
Trading session summary for October 22, 2026, and October 23, 2026 | Ahead of the Market
Open

Negative trading was recorded in US stock markets led by the tech sector, as the
S&P 500 fell by 1.21% and the Nasdaq Composite index dropped by 2.60%, while the Dow Jones index remained virtually unchanged with a slight gain of 0.02%. The drops came following renewed concerns regarding the AI investment race in
financial reports. In Europe, a negative trend was recorded across major indices.

In commodity markets, an increase was recorded in the price of Brent crude oil, which
climbed by 0.46% to $113.69 per barrel. On the macro front, the
probability of keeping US interest rates unchanged stands at 92.5%. The 10-year US
Treasury yield rose by 1.5 basis points to 4.968%.

In Israel, the TA-35 index fell by 1.09% and the TA-125 index
dropped by 0.93%. In the foreign exchange market, the official exchange rate of the US
Dollar rose by 0.52% to 3.11 NIS. Investors are awaiting today’s
release of Purchasing Managers’ Index (PMI) data in the US and financial results from leading companies.

Stock Markets | Index Performance

Israel | Declines in Leading Indices

The TA-35 index fell by 1.09% to 4,166.25 points and the TA-125 index lost 0.93% to 4,067.91 points. Overall market breadth leaned negative at the close, with 27 stocks trading lower against 8 gaining stocks, while one stock
remained unchanged. The leading weighted stocks in the index include Teva, Bank Hapoalim, Bank Leumi, and Elbit
Systems. In the foreign exchange market, the official USD/ILS rate was set at 3.11 NIS, a
0.52% increase compared to the baseline rate of 3.091 NIS.
Continuous trading showed a 0.19% rise to 3.11 NIS.

USA | Tech Stocks Plummet Due to AI Spending Concerns

Sharp declines were recorded on Wall Street in the previous session, as the S&P
500 slipped 1.21% to 7,663.43 points and the Nasdaq Composite
plunged 2.60% to 26,008.86 points (alongside a 2.90% fall in the NASDAQ 100), while the Dow Jones rose 0.02% to
52,867.98 points. The losses followed earnings reports that reignited fears regarding the
spending race in the AI sector. Conversely, the S&P 500 Equal Weight Index (RSP) gained 0.73% to 218.22 points.

In terms of market breadth on the NYSE, a positive trend was recorded with 1,551 advancing stocks versus 1,143 declining stocks and 80 unchanged. The strongest performing sectors were Consumer Staples, up 3.13%, Utilities, climbing 1.70%, and Real Estate, adding 1.38%. On the other hand, the weakest sectors were Technology, dropping 3.34%, Communication Services, falling 2.80%, and Industrials,
shedding 2.32%. The VIX Volatility Index surged 14.09% to 19.03 points.

Europe | Negative Close Across Major Indices

European stock exchanges posted broad-based losses. The STOXX 600 index dropped 1.05% to 637.74 points, Germany’s DAX lost 1.07% to 25,371.75 points, France’s CAC 40 fell 1.39% to 7,811.26 points, and the UK’s FTSE 100 dropped 0.26% to 10,725.03 points.

Far East | Mixed Trend in Asia Amid Tech Sector Pressure

A negative trend was recorded across most Asian markets this morning. The Nikkei 225
index fell 1.72% to 61,825.26 points, the KOSPI plunged 2.07% to 5,419.46 points, and the Shanghai Composite dropped 1.17% to 3,615.22 points. In contrast, Hong Kong’s Hang Seng index
gained 0.26% to 22,993.78 points. Concerns over massive capital
requirements in the AI field weighed heavily on tech stocks and triggered the strongest rally in government
bonds in over three years.

Macro | US Rate Expectations and Oil Price Increase

The current Fed interest rate target range stands at 3.75%–4.00%. Ahead of the upcoming Fed meeting on October 28, 2026,
the FedWatch tool indicates a 92.5% probability of keeping interest rates unchanged,
compared to a 7.5% probability of a rate hike. In the energy market, Brent crude oil rose
0.46% to $113.69 per barrel.

Bonds, Currencies & Commodities

Ahead of Today’s Trading | October 23, 2026

USA: Futures contracts are trading mixed: Dow Mini futures down 0.10%, S&P 500 Mini futures down 0.11%, and Nasdaq Mini futures
up 0.26%. Prior to the market open, financial reports are expected from American Express,
Schlumberger, Gentex, Popular Financial, Infosys, Autoliv, Booz Allen Hamilton, First Hawaiian, Rogers
Communications, and AB Volvo.

Data: At 16:45 (Israel Time), US Purchasing
Managers’ Index data for the Services sector (S&P Global Services PMI) for October will be released, with a
forecast of 57.9 compared to 58.8 in the previous month, along
with the Manufacturing PMI (S&P Global Manufacturing PMI) with a forecast of 55.4
compared to 55.9 in the previous month.

This review is provided for informational purposes only
and does not constitute investment advice, investment marketing, or a recommendation to perform any transactions
in securities. Data is accurate as of the time of writing.

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