Highlights:

– U.S. indices climbed with the Nasdaq up 0.98% and the S&P 500 adding 0.83%.
– European markets advanced modestly, led by Germany’s DAX with a 0.74% rise.
– Tel Aviv equities surged, with the TA-90 gaining 1.50% and strong breadth across sectors.

Global markets closed broadly higher on Thursday, September 4, 2025, with optimism fueled by steady U.S. Treasury yields, improved risk sentiment, and stronger corporate activity. From Wall Street to Europe and Asia, equities advanced, while in Tel Aviv, the rally extended across large-caps and mid-caps with robust trading volumes. As the trading week continues, investors are eyeing Friday, September 5, for labor data in the U.S. and potential signals from global central banks.

Wall Street Strengthens as Volatility Drops

U.S. stocks posted healthy gains on Thursday. The Russell 2000 led the charge with a 1.26% rise to 2,379.61, highlighting renewed appetite for small caps. The Nasdaq advanced 0.98% to 21,707.69, supported by strength in technology and growth stocks. The S&P 500 gained 0.83%, closing at 6,502.08, while the Dow Jones Industrial Average climbed 0.77% to 45,621.29.

Brazil’s Ibovespa added 0.81% to 140,993.25, while Canada’s S&P/TSX rose 0.57% to 28,915.89. Meanwhile, the U.S. Dollar Index eased 0.24% to 98.11, reflecting slight currency weakness, while the VIX volatility index fell sharply by 6.42% to 15.30 — its lowest in weeks, signaling calmer sentiment.

European Markets Track Higher

Across Europe, equities moved upward though gains were measured. Germany’s DAX advanced 0.74% to 23,770.33, leading the region. The FTSE 100 in London rose 0.42%, while the EURO STOXX 50 added 0.41%. MSCI Europe gained 0.36%, and the pan-European ^N100 index climbed 0.25%.

Currency indices reflected some softness: the Euro Index dipped 0.09% to 116.50, and the British Pound Index edged lower by 0.12% to 134.29. France’s CAC 40 bucked the broader upward trend, slipping 0.27% to 7,698.92, weighed by weakness in industrial and luxury sectors.

Asia Sees Moderate Gains with Strong Japan Performance

Asian equities also contributed to the global uptrend. Japan’s Nikkei 225 rose 0.84% to 42,937.63, continuing its strong performance supported by tech exporters. Hong Kong’s Hang Seng advanced 0.54% to 25,194.13, while China’s Shanghai Composite (000001.SS) gained 0.35% to 3,778.95.

India’s Sensex increased 0.35% to 81,002.05, and Australia’s S\&P/ASX 200 climbed 0.31% to 8,854.20. South Korea’s KOSPI managed a smaller 0.09% rise to 3,203.75. On the currency side, the Japanese yen index slipped 0.32% and the Australian dollar index fell 0.36%, showing continued headwinds for regional currencies.

Tel Aviv Stocks Lead with Broad-Based Rally

Israeli markets surged on Thursday, reflecting strong investor demand. The TA-35 rose 0.92% to 3,047.19 with 27 gainers against only 8 decliners. The TA-90 outperformed, up 1.50% at 3,328.70 with 81 advancing stocks. The combined TA-90 and Banks index jumped 1.52% to 3,487.77, highlighting strength in the financial sector.

The TA-125 added 1.09% to 3,109.75, with 108 gainers and only 17 losers. Trading volumes were notably robust, with total equity turnover reaching 2.44 billion shekels and bond turnover at 3.09 billion shekels. Bond indices showed stability, with the All-Bond General Index up 0.07% and the Short-Term Bond Index gaining 0.03%.

Outlook for Friday, September 5, 2025

Heading into Friday’s session, global investors are focused on the upcoming U.S. nonfarm payrolls report, expected to shape Federal Reserve policy expectations. Bond yields are likely to guide equity sentiment, while currency markets may react to fresh labor data. In Europe, industrial figures remain in focus, while Asian markets continue to track China’s economic signals.

For Israel, domestic equities enter Friday’s session with momentum, supported by strong breadth and heavy trading. Investors will be watching global cues closely, particularly U.S. dollar movements, given their impact on local energy costs and cross-border capital flows. With global growth forecasts under review and central banks calibrating next steps, markets appear poised for another eventful trading day.