Global markets delivered a mixed performance on Sunday, September 21, 2025, with Tel Aviv equities sliding sharply while U.S. indices advanced modestly. Investor sentiment reflected both regional and international forces, including interest rate expectations, energy market dynamics, and geopolitical risks. As the new trading week unfolds, the Tel Aviv Stock Exchange will remain closed on September 22 for the holiday, but U.S. markets will continue to set the tone for global risk appetite.

Tel Aviv Stock Market Recap – September 21, 2025

The Tel Aviv Stock Exchange began the week under pressure, as equity markets faced broad-based selling. The TASE-35 Index dropped 1.58% to close at 2,982.63 points, marking a decisive break below the 3,000-point level, with turnover reaching NIS 1.09 billion. Market breadth was overwhelmingly negative, with 32 stocks declining and only 3 advancing.

The TASE-90 Index, which tracks mid-cap stocks, posted an even sharper decline of 1.83%, closing at 3,196.69 on turnover of NIS 443.8 million. Out of 90 constituents, 75 moved lower, 12 advanced, and 3 finished unchanged. This highlights significant pressure on growth-oriented names.

The TASE-125 Index mirrored the weakness, losing 1.63% to settle at 3,031.07 on turnover of NIS 1.54 billion. Broader market sentiment was pessimistic, with 107 decliners against only 15 gainers. Sectoral indices also struggled: the Banks & TASE-90 Combined Index dropped 1.89%, the TA Sector Balance Index shed 1.76%, and the TA-125 Value Index fell 2.00%, showing particular weakness in traditional value names.

Bond Market Stability in Israel

While equities sold off, Israel’s bond market proved more resilient, reflecting a defensive shift by institutional investors. The All-Bond General Index rose 0.28% on a robust turnover of NIS 2.36 billion, signaling demand for safer debt instruments. Short-dated bonds also advanced, with the Bond Index (up to one year) gaining 0.08% to 460.17 points. Inflation-linked corporate debt stood out, as the Tel Bond-Linked A Index jumped 0.64% and the Tel Bond-60 Linked Index rose 0.46%. This divergence between equities and bonds underscores a defensive strategy among investors, with liquidity shifting into fixed income amid heightened volatility.

U.S. Markets Performance – September 21, 2025

In contrast to Tel Aviv, Wall Street closed higher on September 21. The Nasdaq gained 0.72% to 22,631.48, while the S&P 500 advanced 0.49% to 6,664.36. The Dow Jones Industrial Average added 0.37% to 46,315.27, and the S&P/TSX Composite Index in Canada climbed 1.07% to 29,768.36. The VIX, Wall Street’s “fear index,” declined 1.59% to 15.45, reflecting reduced short-term volatility expectations.

The U.S. Dollar Index also strengthened, rising 0.18% to 97.82, while Brazil’s Bovespa added 0.25% to 145,865.11. The Russell 2000 diverged, slipping 0.77% to 2,448.77, as small-cap stocks faced renewed selling pressure. The gains in large-cap U.S. indices suggest cautious optimism, but breadth was mixed, echoing concerns over monetary policy, corporate earnings, and global growth prospects.

Outlook for Monday, September 22, 2025

With Tel Aviv markets closed on September 22 for the holiday, investor attention will shift toward U.S. trading sessions and global market developments. The resilience of bonds in Israel suggests that institutional investors remain defensive, prioritizing yield stability while equity valuations face headwinds.

For global investors, the main focus will be U.S. monetary policy signals, geopolitical headlines, and commodity price fluctuations. Energy markets remain a particular concern given their impact on inflation trajectories. In the U.S., traders will also track sector rotation patterns, with technology stocks in the Nasdaq leading momentum while small caps lag.

Overall, September 22 is expected to bring continued volatility across global markets. Equities could remain range-bound, with upside potential limited unless macroeconomic sentiment improves. For Tel Aviv investors, the holiday closure provides a pause, but positioning will likely resume cautiously when trading restarts, with bonds expected to retain defensive inflows and equities still facing downside risks unless global conditions stabilize.