Wall Street Wavers, Tel Aviv Shows Resilience: Global Market Overview for July 2, 2025

The first trading day of July opened with caution across global markets. While Wall Street closed the session mixed amid sector rotation and mounting macroeconomic uncertainty, the Tel Aviv Stock Exchange delivered a relatively positive performance, supported by strength in mid-cap and growth-oriented indices. Global investors remain watchful ahead of key U.S. labor data and European inflation releases later this week.

United States: Tech Stocks Drag, Value Plays Recover

Monday’s trading session in the U.S. saw a divergence between growth and value sectors. The Dow Jones Industrial Average climbed 0.91% to close at 44,494 points, while the Russell 2000 gained 1.03%, suggesting renewed interest in small-cap equities. In contrast, the tech-heavy Nasdaq fell 0.82% to 20,202, and the S&P 500 edged down 0.11%, weighed down by steep declines in mega-cap tech names.

Tesla plunged 5.34%, Nvidia dropped 2.97%, and Palantir lost 4.14%, highlighting investor skittishness around overvalued tech amid rising rates and potential regulatory concerns. The VIX “fear index” rose 0.60% to 16.83, signaling elevated market anxiety ahead of Friday’s Non-Farm Payroll report.

Europe: German Weakness Offsets British Stability

European indices ended mostly lower, with Germany’s DAX falling 0.99% to 23,673 and the EURO STOXX 50 losing 0.39%. France’s CAC 40 was nearly flat at -0.04%, and London’s FTSE 100 eked out a 0.28% gain. Investors remain wary of persistent inflation in the Eurozone, with sovereign bond yields climbing and speculation growing around the European Central Bank’s next rate move.

Asia-Pacific: Commodity Boost vs. Regional Weakness

Asian markets were mixed. Japan’s Nikkei 225 fell 0.54%, and South Korea’s KOSPI declined 0.70%. Meanwhile, Australia’s ASX 200 rose 0.82%, benefiting from a rally in energy and metals. The Hang Seng in Hong Kong edged up 0.47%, while China’s SSE Composite Index dipped slightly by 0.10%. Currency movements showed modest strength in the Japanese yen (+0.44%) and Australian dollar (+0.05%) versus the U.S. dollar.

Commodities: Oil Rises, Precious Metals Pause

Commodity prices posted modest gains. Brent crude oil rose 0.18% to $67.23 per barrel, and WTI traded at $65.55, supported by summer demand forecasts. Natural gas advanced 0.73% to $3.44. Gold held steady at $3,348 per ounce (-0.04%), while silver slipped 0.34%, reflecting limited appetite for safe-haven assets despite increased equity volatility.

Tel Aviv Stock Exchange: Mid and Small Caps Lead the Way

The Tel Aviv Stock Exchange closed mostly in the green, led by impressive performances in mid- and small-cap indices. The TA-90 jumped 1.44%, while the broader TA-125 rose 0.08%. The TA-35, however, fell 0.4% due to weakness in the banking sector—where the TA-Banks Index slumped 2.24%.

Meanwhile, the TA-MidCap150 climbed 1.33%, and the TA-SME60 gained 1.37%, with investor sentiment favoring diversified and growth-focused names. Trading volume remained solid, with over 3 billion shekels recorded across major indices. Sector-wise, CleanTech (TA-Cleantech +2.5%) and Insurance (TA-Insurance +1.15%) were top performers, offsetting losses in Financials and Biomed.

Notable Market Highlights:

• Top U.S. Gainers: UnitedHealth Group (+4.54%), Target (+5.27%), and Ford (+4.61%) led the charge.
• Tech Under Pressure: Tesla (-5.34%), Nvidia (-2.97%), and Palantir (-4.14%) weighed on the Nasdaq.
• FX Snapshot: EUR/USD slipped 0.09% to 1.1793; USD/JPY advanced 0.24% to 143.73.
• U.S. Bonds: The 10-year Treasury yield rose to 4.251%, reflecting persistent inflation concerns.

Looking Ahead

Markets enter July with cautious optimism. All eyes are on Friday’s U.S. employment data, which will offer critical insight into the labor market’s resilience and potential Fed policy moves. Meanwhile, Q2 earnings season kicks off next week and is expected to play a pivotal role in determining short-term market sentiment.

In Israel, investors will continue monitoring developments in the financial sector and the Bank of Israel’s inflation commentary. Sector rotation may continue to favor energy, industrials, and tech innovation plays.