Global markets closed mixed on Tuesday, August 26, 2025, as investors balanced optimism in U.S. equities with persistent weakness in European indices and cautious trading in Asia. While Wall Street continued to build on recent momentum, European markets slipped amid renewed economic concerns, and Asia posted modest gains, leaving traders focused on key economic data expected later this week.

U.S. Markets: Momentum Builds Ahead of Key Economic Releases

U.S. equities maintained a steady upward trajectory on Tuesday, supported by strength in small-cap and technology stocks. The Russell 2000 led the gains with a 0.83% rise to 2,358.60, signaling renewed interest in growth-oriented sectors. The Nasdaq advanced 0.44% to 21,544.27, driven by big tech resilience, while the S&P 500 gained 0.41% to close at 6,465.94. The Dow Jones Industrial Average added 0.30%, ending the day at 45,418.07.

Volatility remained subdued, with the VIX falling 1.15% to 14.62, underscoring investor confidence ahead of U.S. GDP and inflation data due later this week. The U.S. Dollar Index edged higher by 0.18% to 98.40, reflecting steady demand for safe-haven assets.

Europe: Indices Retreat as Economic Concerns Weigh on Sentiment

In Europe, major indices extended their declines as weak manufacturing data and lingering geopolitical tensions pressured investor sentiment. Germany’s DAX fell 0.50% to 24,152.87, while London’s FTSE 100 dropped 0.60% to 9,265.80. The EURO STOXX 50 index tumbled 1.11% to 5,383.68, and France’s CAC 40 led the losses with a 1.70% decline to 7,709.81.

Regional weakness was further reflected in the MSCI Europe Index, which sank 1.07%, while the broader Euronext 100 (^N100) fell 1.28%. The Euro Index rose slightly by 0.23%, and the British Pound Index gained 0.17%, signaling some currency strength despite equity market downturns.

Asia-Pacific: Modest Gains, but China Remains a Focus

Asian markets ended Tuesday’s session mixed, with Japan’s Nikkei 225 climbing 0.39% to 42,561.03 and China’s Shanghai Composite (000001.SS) adding 0.33% to 3,881.07. Australia’s S&P/ASX 200 gained 0.15%, while Hong Kong’s Hang Seng inched up 0.04% to 25,535.22.

However, South Korea’s KOSPI slipped 0.02%, and India’s S&P BSE Sensex fell sharply by 1.04% to 80,786.54, weighed down by profit-taking in banking and IT stocks. The Japanese Yen Index rose 0.27%, and the Australian Dollar Index added 0.14%, reflecting cautious optimism in currency markets.

Tel Aviv: Gains in TA-35 and Banks Lead Local Market Higher

Tel Aviv closed Tuesday’s session with mixed results but showed strength in large-cap and banking sectors. The TA-35 Index rose 0.60% to 3,066.34, supported by strong financials, while the TA-90 edged lower by 0.01% to 3,354.41. The Banks & TA-90 Index advanced 0.78% to 3,520.96, highlighting investor confidence in the sector.

Broader indices also posted moderate gains, with the TA-125 up 0.42% to 3,128.57, despite weakness in corporate bonds as the All-Bond Index slipped 0.04%.

Outlook for Wednesday, August 27, 2025

Looking ahead, global investors are expected to closely watch U.S. GDP revisions and preliminary inflation data, which could provide fresh clues on the Federal Reserve’s next policy moves. European markets will focus on business sentiment surveys, while Asia will monitor Chinese economic signals amid ongoing growth concerns.

For Tel Aviv, local traders will be eyeing global cues and domestic earnings reports, particularly from the banking and technology sectors. With volatility low and investor sentiment cautiously optimistic, Wednesday’s session may see continued selective buying, though external risks remain.