Global markets delivered a mixed performance on Tuesday, August 5, 2025, with major indices across the Americas and Europe posting modest gains, while the Tel Aviv Stock Exchange (TASE) saw a steep selloff across key indices. Asian markets were broadly positive, though investor caution remained amid global macroeconomic uncertainties. Here’s a full breakdown of yesterday’s trading action and what to expect for Wednesday, August 6.

📉 U.S. Markets Retreat Despite Strength in Small-Caps

Wall Street closed lower on Tuesday, snapping a brief rebound as tech-led losses dragged the Nasdaq and S&P 500 into negative territory. The Dow Jones Industrial Average edged down 0.14% to 44,111.74, while the S&P 500 fell 0.49% to 6,299.19. The Nasdaq Composite lagged with a 0.65% drop, ending the session at 20,916.55.

Notably, small-cap stocks fared better, with the Russell 2000 gaining 0.60% to finish at 2,225.67, suggesting investors may be rotating into undervalued or domestic-focused equities. Volatility crept higher, with the VIX index up 1.88% to 17.85.

The U.S. Dollar Index dipped slightly by 0.06% to 98.72, as currency traders anticipate economic data later this week, including jobless claims and inflation indicators.

🇨🇦 Canadian and Brazilian Markets Post Gains

Canada’s benchmark S&P/TSX Composite Index rallied 2.03% to close at 27,570.08, supported by strength in materials and energy stocks. Meanwhile, Brazil’s IBOVESPA ticked up 0.14% to 133,151.30 amid cautious optimism around commodity pricing and upcoming fiscal policy updates.

🇪🇺 European Stocks Edge Higher

European markets delivered a relatively calm session on August 5, with gains across most major indices. Germany’s DAX rose 0.37% to 23,846.07, and the FTSE 100 advanced 0.16% to 9,142.73. France’s CAC 40 was the outlier, slipping 0.14% to 7,621.04.

Pan-European indices also closed in the green: the EURO STOXX 50 gained 0.14% and the MSCI Europe climbed 0.15%. The British Pound Index edged up 0.08%, while the Euro Index rose 0.04%, reflecting mild investor confidence in the region’s currency stability.

🌏 Asian Markets Stay in the Green

Asia saw a generally positive session on Tuesday. Japan’s Nikkei 225 climbed 0.58% to 40,783.45, while South Korea’s KOSPI slipped 0.33% to 3,187.29. In China, the Shanghai Composite (000001.SS) rose 0.27% to 3,627.54, and the Hang Seng in Hong Kong added 0.14% to 24,937.79.

Australia’s S&P/ASX 200 led regional gains, up 0.60% at 8,823.00, as mining and financial stocks drove momentum. India’s SENSEX inched up 0.05% to close at 80,751.52.

Currencies across the region were mixed. The Australian Dollar Index gained 0.07%, while the Japanese Yen Index weakened by 0.32%.

📉 Tel Aviv Stocks Plunge Across the Board

Israeli markets had a notably rough session on August 5, with steep losses across all major indices. The TA-35 index dropped 1.50% to 2,945.40, while the TA-90 plunged 3.06% to 3,163.31. The broader TA-125 fell 1.89% to 2,993.16, with just 10 rising stocks versus 112 decliners.

The sharpest drop came from the TA-125 Value Index, which sank 3.23%, and the TA Banks and TA-90 Combined Index, down 3.07%. The TA Sector Balance Index slid 2.40%, pointing to widespread sectoral weakness.

Bond markets also reflected bearish sentiment. The All-Bond Index fell 0.12%, while the Tel Bond 60 Index slipped 0.22%. The only notable gain came from short-term government bonds, which edged up 0.02%.

🔮 What to Expect on August 6, 2025

Looking ahead to Wednesday, August 6, market sentiment remains cautious as investors await midweek economic data out of the U.S., including key productivity figures and oil inventory numbers. Tel Aviv may continue facing pressure unless sentiment is buoyed by corporate earnings or global tailwinds.

Traders will also be watching for currency fluctuations and bond yields to assess global risk appetite. Given Tuesday’s divergence across regional markets, volatility is likely to persist throughout the week.

Stay tuned for continued coverage and a deeper dive into macroeconomic and corporate developments driving global markets.