Global Markets Rally as Risk Appetite Grows – Nasdaq and TA-125 Lead the Way

Markets across the globe posted strong gains on July 9, fueled by easing volatility, falling bond yields, and renewed optimism around interest rate trajectories. From Wall Street to Tel Aviv and across Europe and Asia, equities broadly climbed, with financials, technology, and industrials leading the charge.

Israel: Broad Gains Across All Indices, Financials and Banks Shine

The Tel Aviv Stock Exchange had a notably bullish session, with all major indices closing significantly higher. The TA-125 index rose by 1.69%, closing at 3,130.84 points, while the TA-90 jumped 1.87%, and the TA-35 gained 1.58%. Volumes exceeded 3 billion shekels, and advances strongly outnumbered declines.

The standout performers were financials: the TA-Finance index surged by 3.59%, and the Insurance & Financial Services index soared 5.68%. The TA-Banks index also climbed over 1.2%. The buying pressure was broad-based, impacting sectoral indices including technology, cleantech, and climate-focused indices such as the TA-125 Climate Clean, which rose 1.72%.

United States: Volatility Dives as Indices Climb

U.S. markets closed higher, with major benchmarks extending their upward trajectory. The Nasdaq advanced 0.94%, the S&P 500 gained 0.61%, and the Dow Jones added 0.49%. Small-cap stocks, tracked by the Russell 2000, led with a 1.07% rise.

The VIX volatility index dropped sharply by 5.18% to 15.94, signaling increased investor confidence and calm heading into key inflation data later this week. Tech stocks and growth companies led the gains. NVIDIA added 1.8%, closing at $162.88, while Microsoft rose 1.39%, and Coinbase gained 5.36%.

Other notable winners included Plug Power (+25.35%), Verona Pharma (+20.62%), and Bloom Energy (+18.15%), highlighting renewed interest in clean energy and biotech sectors.

Europe: Broad-Based Rally Led by DAX, CAC and STOXX

European markets saw one of their strongest sessions in recent weeks. The CAC 40 in France advanced 1.44%, the DAX in Germany rose 1.42%, and the EURO STOXX 50 climbed 1.37%. Gains were driven by strong performance in industrials, basic materials, and financials.

The MSCI Europe index rose 0.96%, while the FTSE 100 in London posted a modest 0.15% gain. The Euro and British Pound were flat, suggesting currency stability even amid equity strength.

Asia: South Korea and China Lead, Japan Softens

Asian markets were mostly higher. The KOSPI in South Korea gained 1.27%, the Shanghai Composite added 0.59%, and the ASX 200 in Australia rose 0.57%. Hong Kong’s Hang Seng index was up 0.44%.

However, Japan’s Nikkei 225 declined 0.65%, marking a pause after a strong previous run. The Sensex in India also edged lower by 0.39%, likely due to local profit-taking.

Commodities, Bonds, and Currencies: Copper Rallies, Yields Decline

Commodity prices were mostly stable to positive. Gold edged up 0.25% to $3,329/oz, Silver added 0.16%, and Brent Crude Oil held steady at $70.24/barrel. Copper saw a notable 2.47% increase, indicating rising demand expectations.

In fixed income, U.S. Treasury yields fell across the curve. The 10-Year Yield declined to 4.342% (-1.65%), while the 30-Year dropped by 1.38%. The lower yields suggest bond traders are increasingly pricing in a potential Fed rate cut later this year.

In FX markets, the U.S. Dollar weakened modestly. EUR/USD rose 0.16%, and the dollar also lost ground against the GBP, CAD, and AUD. The dollar index dipped to 97.39 (-0.17%).

Bottom Line

Markets are entering mid-July with renewed momentum. Falling volatility, positive sentiment in financials, and strong risk appetite across sectors signal optimism. Investors now await U.S. inflation data later this week, which could set the tone for global markets into the second half of the month.