Global markets on Monday, September 22, 2025, reflected diverging sentiment across regions as investors balanced stronger U.S. tech momentum against weakness in European and Chinese equities. Meanwhile, Israel’s market remained closed for the holiday. As Tuesday, September 23, 2025, begins, investors are looking ahead to key economic data and further central bank commentary that could shape sentiment for the week.

U.S. Markets Lead with Tech Strength

Wall Street extended its recent rally on Monday, with the Nasdaq climbing +0.70% to 22,788.98 and the S&P 500 advancing +0.44% to 6,693.75. The Dow Jones Industrial Average added +0.14% to 46,381.54, reflecting more modest gains as cyclical stocks lagged. Small-cap equities also contributed, with the Russell 2000 rising +0.59%. Volatility ticked higher, as the VIX climbed +4.21%, signaling ongoing investor caution despite upward momentum.

The U.S. Dollar Index held steady at 97.37, reflecting resilience ahead of this week’s macroeconomic releases. Canadian equities joined the upside, with the S&P/TSX Composite index advancing +0.64%, suggesting broader North American stability despite global uncertainty.

Europe Ends Mixed on Regional Divergences

European equities posted a fragmented session on September 22. The FTSE 100 gained +0.11%, underpinned by strength in energy and financials, while the Euro Index rose +0.49% and the British Pound Index added +0.25%, reflecting currency market support. However, broader continental indices struggled: the DAX dropped -0.48%, the CAC 40 slipped -0.30%, and the EURO STOXX 50 declined -0.30%. The MSCI Europe closed nearly flat at -0.01%, underscoring mixed investor appetite across the region.

Investors in Europe remain cautious amid ongoing concerns around slowing growth and policy uncertainty from the European Central Bank. Corporate earnings revisions and energy price fluctuations also added pressure, contributing to weaker sentiment in core markets.

Asia Splits Between Japan’s Rally and China’s Decline

Asian trading on Monday saw sharp divergences. Japan’s Nikkei surged +0.99% to 45,493.66, extending its year-to-date strength as technology exporters benefited from a stable yen, which edged only +0.12% higher. South Korea’s KOSPI rose +0.47% and Australia’s S&P/ASX 200 climbed +0.44%, supported by cyclical recovery optimism.

However, Chinese equities weighed heavily on regional sentiment. The Shanghai Composite fell -1.17% to 3,783.97, while Hong Kong’s Hang Seng dropped -1.26% to 26,012.68, pressured by property sector weakness and renewed investor skepticism over stimulus effectiveness. India’s Sensex also edged lower by -0.43%, reflecting broader risk aversion across emerging markets.

Outlook for September 23, 2025: Investors will closely watch for U.S. housing and consumer sentiment data, which could provide clues on the Federal Reserve’s policy stance. European markets may remain volatile as energy prices and ECB rhetoric dominate headlines. In Asia, focus remains on China’s ability to stabilize its markets after consecutive declines. With Israel’s markets reopening later this week following the holiday, regional flows could resume, adding to global crosscurrents. Overall, cautious optimism prevails, but volatility remains elevated heading into Tuesday’s trade.