Highlights:

– U.S. markets ended mixed as tech stocks lifted the Nasdaq while the Dow slipped.
– European indices posted broad gains, led by France’s CAC 40 and the DAX in Germany.
– Asian markets diverged, with Japan’s Nikkei climbing while China’s Shanghai Composite fell sharply.
– Tel Aviv indices advanced across the board on strong trading volumes, reflecting resilience in local equities.

Global equity markets delivered a mixed picture on Wednesday, September 3, 2025, as investors weighed shifting interest rate expectations, fluctuating currency moves, and ongoing geopolitical risks. While Wall Street’s major indices were uneven, European stocks extended their rally and Asian markets showed stark contrasts between Japan and China. In Israel, Tel Aviv trading closed firmly higher, supported by broad-based gains in large- and mid-cap shares.

U.S. Markets Mixed as Tech Outperforms

On Wall Street, the Nasdaq Composite rose +1.02% to close at 21,497.73, boosted by strong demand for technology and growth stocks. The S&P 500 followed with a more modest +0.51% gain, finishing at 6,448.26. However, the Dow Jones Industrial Average slipped -0.05% to 45,271.23, dragged down by weakness in financials and industrials.

The Russell 2000, a gauge of small-cap performance, edged lower by -0.10%, signaling that investor confidence in riskier equities remains fragile. Volatility retreated, with the VIX down nearly -4.78% to 16.35, suggesting that short-term market anxiety has eased. The U.S. Dollar Index also ticked slightly higher, up +0.08% to 98.22, reflecting continued resilience of the greenback.

European Stocks Advance Broadly

In Europe, equity markets closed firmly in positive territory as easing inflation expectations and strong corporate earnings supported sentiment. France’s CAC 40 jumped +0.86% to 7,719.71, while Germany’s DAX added +0.46% to finish at 23,594.80. The pan-European STOXX 50 rose +0.64% to 5,325.01, with broad participation across sectors.

The FTSE 100 in London gained +0.67%, supported by strength in commodity and energy names, while the MSCI Europe Index climbed +0.69%. Currency markets also moved in favor of Europe, with the British Pound Index up +0.43% and the Euro Index adding +0.17% against global peers.

Asia Sees Sharp Divergence

Asian markets painted a mixed picture on Wednesday. Japan’s Nikkei 225 surged +1.18% to 42,435.06, benefiting from strong export data and a weaker yen, which eased +0.18% against the U.S. dollar. South Korea’s KOSPI gained +0.29%, while India’s Sensex advanced +0.72%.

Australia also joined the positive camp, with the S\&P/ASX 200 up +0.59%, supported by commodity-linked sectors as the Australian Dollar Index strengthened +0.39%.

In contrast, Chinese equities fell sharply, with the Shanghai Composite dropping -1.97% to 3,738.32 and Hong Kong’s Hang Seng retreating -1.29%. Investor sentiment in China remains pressured by ongoing property sector weakness and concerns about regulatory tightening.

Tel Aviv Stock Exchange Rallies

Israeli equities closed higher on September 3, reflecting optimism in both blue-chip and mid-cap names. The TA-35 Index gained +0.74% to 3,019.45, while the TA-90 rose +1.03% to 3,279.45. Broader benchmarks also strengthened: the TA-125 advanced +0.84%, and the TA-Banks & Financials sector index added +1.11%, signaling solid momentum in the financial sector.

Trading volumes were robust, with turnover in the equity market reaching approximately ₪2.65 billion and bond market activity totaling over ₪4.15 billion. Fixed-income benchmarks were relatively stable, with the All-Bond Index rising +0.06% and short-term bond indices flat.

Outlook for Thursday, September 4, 2025

Looking ahead to Thursday’s trading session, investors are expected to focus on macroeconomic data releases, including U.S. labor market reports and European inflation updates. In the U.S., attention will remain on the trajectory of Federal Reserve policy as markets continue to price in potential interest rate cuts in early 2026.

In Asia, markets will monitor China for signs of stabilization in property and credit conditions, while in Israel, trading volumes suggest that local institutional investors are positioning more aggressively ahead of year-end. Currency markets and bond yields will remain key drivers of equity performance.

Overall, the global market landscape entering September 4, 2025 reflects both resilience and caution. With the Nasdaq pushing higher, European equities maintaining momentum, and Tel Aviv posting healthy gains, optimism is visible. Yet, risks from China’s slowdown, volatile currency moves, and uncertain monetary policy paths mean that investors are likely to remain selective in the sessions ahead.