Global markets posted a mixed performance on Wednesday, July 16, 2025, as strong momentum in U.S. equities contrasted with weakness across European indices and marginal losses in Asia. Meanwhile, the Tel Aviv Stock Exchange ended in the red despite relatively active trading volumes. As investors look ahead to Thursday, July 17, key questions remain regarding the sustainability of U.S. tech strength and global macroeconomic headwinds.

📈 U.S. Markets Rally Again Led by Small Caps and Dow

Wall Street closed firmly in positive territory on Wednesday, buoyed by optimism around corporate earnings and cooling inflation expectations. The Russell 2000 surged +0.99% to 2,226.98, highlighting renewed risk appetite for small-cap stocks. The Dow Jones Industrial Average climbed +0.53% to 44,254.78, outperforming the broader S&P 500, which added +0.32% to close at 6,263.70. The Nasdaq Composite posted more modest gains, up +0.25% at 20,730.49, as investors awaited more tech earnings.

Canada’s S&P/TSX Composite Index also joined the rally with a +0.37% increase to 27,152.97. Brazil’s IBOVESPA rose slightly by +0.19%, reflecting stability in Latin American sentiment. Meanwhile, the US Dollar Index edged up +0.12% to 98.51, and the VIX volatility index fell by -1.27% to 17.16, signaling a calmer investor outlook.

🇪🇺 European Markets Slide as Economic Concerns Linger

In contrast to Wall Street’s gains, European indices declined across the board. The EURO STOXX 50 dropped -1.05%, while the MSCI Europe fell -0.75%. The FTSE 100 in London slipped -0.13%, while Germany’s DAX declined -0.21% and France’s CAC 40 slid -0.57%.

Currency indices reflected moderate resilience, with the Euro Index up +0.36% and the British Pound Index higher by +0.23%. However, economic uncertainty in the eurozone, including fears of sluggish growth and weak industrial data, continues to weigh on sentiment.

🌏 Asia Ends Mixed Amid Currency Volatility

Asian trading ended with a mixed tone. Australia’s S&P/ASX 200 led the gains, climbing +0.75% to 8,626.20. The Japanese Yen Index advanced +0.73%, indicating currency strength, while the Australian Dollar Index was up +0.22%.

In contrast, China’s Shanghai Composite (000001.SS) edged down -0.08%, while the Nikkei 225 dipped -0.15% to 39,602.58. Hong Kong’s Hang Seng lost -0.16%, and South Korea’s KOSPI fell -0.18% as geopolitical tension and global demand fears loomed.

🇮🇱 Tel Aviv Market Retreats Across Major Indices

The Tel Aviv Stock Exchange closed lower on July 16, in line with broader European weakness. The TA-35 fell -0.36% to 2,986.29, while the TA-90 declined -0.16% to 3,335.38. The broader TA-125 dropped -0.31% to 3,063.98. Trading activity remained strong, with the TA-125 recording over 1.88 billion₪ in turnover.

Bond indices were mixed. The All-Bond Index slipped -0.04%, while the Tel-Bond CPI-Linked A rose +0.06%. Short-term bonds also saw slight gains, with the Short-Term Bond Index up +0.04%. Sector rotation and inflation-adjusted instruments remained in focus.

🔮 What to Watch on Thursday, July 17

Looking ahead to Thursday’s trading session, markets will be watching:

• U.S. jobless claims data, which may influence interest rate expectations
• Tech earnings, particularly mid-tier software firms
• Oil price movements, given rising geopolitical tensions in Eastern Europe
• Tel Aviv trading patterns, with local investors reacting to international cues and bond flows

Overall, global markets remain sensitive to a balance of strong earnings momentum in the U.S. and macroeconomic weakness elsewhere. Investors should brace for potential volatility as global central banks remain cautious and geopolitical risks continue to simmer.