Israeli financial markets closed today, February 23, 2026, with a mixed performance across major indices. While large-cap stocks managed modest gains, mid-cap weakness and softer bond prices indicated a more cautious tone among investors following last week’s rebound.

Large Caps Show Resilience Amid Mixed Breadth

The Tel Aviv-35 index rose 0.27 percent, demonstrating continued resilience among leading blue-chip companies. Gains were supported by a nearly balanced ratio of advancing and declining stocks, highlighting selective strength in heavyweight names.

However, the broader Tel Aviv-125 index advanced only 0.05 percent, signaling limited upward momentum. Market breadth across the wider index leaned negative, with decliners significantly outnumbering advancers. This suggests that while index levels remained stable, underlying participation weakened.

Mid-cap stocks faced renewed selling pressure. The Tel Aviv-90 index declined 0.82 percent, reflecting risk reduction in higher-beta shares. The combined Tel Aviv 90 and banking index posted a slight 0.16 percent gain, indicating that banking stocks offered partial support despite broader mid-cap softness.

Value Stocks Stall as Sector-Balance Index Slips

Value-oriented shares closed unchanged, signaling a pause after recent volatility. The balance between advancing and declining stocks in this segment leaned negative, indicating selective selling rather than uniform weakness.

The sector-balance index fell 0.16 percent, reflecting mild declines across multiple industries. Gains in certain defensive areas were offset by weakness in cyclical segments. This pattern suggests that investors are rotating within the market rather than exiting equities altogether.

Overall, equity market sentiment appeared neutral to slightly cautious. The divergence between stable large caps and weaker mid-caps indicates that investors may be concentrating exposure in more established names while trimming riskier positions.

Bond Markets Edge Lower in Controlled Pullback

Fixed income markets declined modestly. The general bond index fell 0.06 percent, while inflation-linked bonds dropped 0.15 percent. Short-term bonds managed a small gain of 0.02 percent, suggesting stability at the front end of the yield curve.

Bond breadth was notably weaker, with decliners outnumbering advancers by a wide margin in several segments. Despite this, price movements remained contained, pointing to orderly portfolio adjustments rather than stress-driven selling.

The modest bond decline alongside mixed equity performance indicates that investors are not aggressively shifting toward safety. Instead, the market appears to be in a consolidation phase following recent gains.

Forward-Looking: Watching Breadth, Mid-Cap Stability, and Bond Signals

Looking ahead to the next trading session, attention will focus on whether mid-cap stocks can stabilize. Continued weakness in this segment could pressure broader indices, while a rebound would restore confidence in risk appetite.

Large-cap leadership remains a stabilizing factor. If blue-chip stocks maintain their upward trajectory, they could anchor the broader market even if mid-cap volatility persists. Market breadth will remain a key indicator; improvement in advancing stocks would signal renewed momentum.

Bond market direction will also be critical. A stronger move lower in bonds could reflect increased rotation into equities, while renewed bond strength might signal growing caution.

Opportunities may arise if selective mid-cap pullbacks create attractive entry points. Risks include extended weakness in breadth and potential volatility from external factors. The next session should clarify whether the