Global equity markets delivered a cautious performance on Thursday, September 25, 2025, as U.S. and European indices pulled back in unison. Currency weakness in the euro and pound, coupled with renewed volatility in the U.S., dampened sentiment. Asia presented a more fragmented picture, while Israel’s stock market closed with solid gains before shutting for Friday’s session.

U.S. Markets Under Pressure

Wall Street experienced a broad-based pullback on September 25. The Dow Jones Industrial Average slipped 0.38% to 45,947.32, while the S&P 500 fell 0.50% to 6,604.72. The Nasdaq Composite mirrored that loss, closing at 22,384.70. The Russell 2000, often a gauge of domestic growth sentiment, posted the steepest drop of the major U.S. indices with a 0.98% decline.

Investor nerves were visible in the CBOE Volatility Index (VIX), which climbed 3.46% to 16.74. This uptick in volatility comes as traders balance interest rate expectations with concerns about slowing corporate earnings momentum. The U.S. Dollar Index also edged lower by 0.16% to 98.39, reflecting investor rotation into other currencies and assets.

European Equities Retreat

Across Europe, markets followed Wall Street’s weaker lead. Germany’s DAX fell 0.56% to 23,534.83, while France’s CAC 40 dropped 0.41% to 7,795.42. The FTSE 100 in London lost 0.39%, closing at 9,213.98. Broader indices reflected the same weakness, with the EURO STOXX 50 down 0.36% and the MSCI Europe index falling by a sharper 1.17%.

The euro index slipped 0.66% to 116.62, and the British pound index weakened 0.77% to 133.44. Currency pressures have raised concerns about capital outflows from European equities, as foreign investors weigh exchange rate risks against still-resilient corporate performance.

Asia Faces Mixed Performance

Asian markets provided a more fragmented picture. Australia’s S&P/ASX 200 gained 0.17%, buoyed by strength in resources. In contrast, Japan’s Nikkei 225 fell 0.56% to 45,497.45, while South Korea’s KOSPI dropped a steep 2.57%, making it the worst-performing index of the day. Hong Kong’s Hang Seng slipped 0.65%, and China’s Shanghai Composite shed 0.18%.

Currency movements added to the pressure: the Japanese yen index lost 0.64% to 66.75, and the Australian dollar index retreated 0.65% to 65.40. Investors remain cautious on Asia’s growth outlook amid uneven demand signals and persistent geopolitical uncertainties.

Israel Market Snapshot

Israeli equities ended Thursday, September 25, with gains, as the TA-35 climbed 1.75% to 3,034.83 and the TA-125 advanced 1.26%. Trading volumes were robust, with equities turnover above 5 billion shekels. The Tel Aviv Stock Exchange is closed today, Friday, September 26, leaving investors to digest Thursday’s performance and prepare for next week’s reopening.

Outlook for September 26, 2025

As markets transition into Friday trading, investors are set to monitor whether Wall Street can stabilize after Thursday’s decline. Attention will center on economic data releases and central bank commentary, as well as continued developments in foreign exchange markets.

In Europe and Asia, the focus remains on currency moves and geopolitical drivers, which have been creating headwinds for equities. Meanwhile, with Israel’s market shut for September 26, attention will turn to whether its strong Thursday close can provide momentum once trading resumes.

Overall, Friday, September 26, 2025, begins against a backdrop of cautious global sentiment, with Israel’s resilience offering a rare bright spot amid widespread weakness.