Global markets closed mixed on Tuesday, August 19, 2025, with investors navigating a sharp divergence across regions. U.S. equities ended the session broadly lower, pressured by technology stocks and small-cap weakness, while European indices rallied on renewed optimism around corporate earnings. In Asia, most benchmarks slipped, led by steep declines in Japan and South Korea. Meanwhile, Tel Aviv bucked the global downtrend, with major Israeli indices posting solid gains across the board. As trading resumes on Wednesday, August 20, 2025, investors are weighing whether Europe’s momentum can offset U.S. and Asian headwinds.

U.S. Markets Struggle as Tech Drags Nasdaq Lower

Wall Street closed in negative territory on Tuesday, with the Nasdaq plunging 1.46% to 21,314.95. The S&P 500 fell 0.59% to 6,411.37, while the Dow Jones Industrial Average managed a flat finish, inching up just 0.02% to 44,922.27. Small caps underperformed, with the Russell 2000 shedding 0.78%.

Volatility edged higher, with the VIX rising 3.87% to 15.57, signaling a cautious investor mood ahead of key economic data later this week. The U.S. Dollar Index held steady at 98.35 (+0.08%), reflecting resilience despite equity weakness.

In Latin America, Brazil’s IBOVESPA suffered the steepest drop among major global benchmarks, tumbling 2.10% to 134,432.27, as commodity-linked stocks came under pressure.

European Stocks Advance on Earnings Optimism

European markets extended their positive momentum on Tuesday, August 19. The CAC 40 surged 1.21% to 7,979.08, while the EURO STOXX 50 added 0.89% to 5,483.28. Germany’s DAX rose 0.45% to 24,423.07, and London’s FTSE 100 climbed 0.34% to 9,189.22.

The broad-based MSCI Europe Index gained 0.76%, signaling that investors continue to rotate into European equities amid strong quarterly earnings and improving business sentiment. Currency markets, however, painted a more cautious picture: the Euro Index slipped 0.12%, and the British Pound Index fell 0.13%, reflecting broader dollar strength.

Asia Sees Heavy Losses as Nikkei and KOSPI Drop

Asian markets ended sharply lower on Tuesday. Japan’s Nikkei 225 slumped 1.82% to 42,753.32, marking its steepest daily decline this month, as tech exporters fell under pressure from U.S. market weakness. South Korea’s KOSPI Composite Index dropped 1.96% to 3,089.78, extending its losing streak.

In China, the Shanghai Composite (000001.SS) slipped 0.06% to 3,725.22, while Hong Kong’s Hang Seng Index fell 0.61% to 24,970.89. India’s S&P BSE SENSEX declined 0.12% to 81,543.42, while Australia’s S&P/ASX 200 held firm with a 0.21% gain to 8,915.00, supported by financials.

Currency markets in Asia reflected regional caution: the Japanese Yen Index rose 0.10%, while the Australian Dollar Index dropped 0.57%, weighed by weaker commodity demand.

Tel Aviv Rises Broadly Across Indices

In sharp contrast to global weakness, Tel Aviv’s stock market closed higher across major benchmarks on Tuesday, August 19, 2025.

• The TA-35 gained 0.58% to 3,003.79, with 19 advancers versus 14 decliners.
• The TA-90 outperformed, rising 0.94% to 3,318.83.
• The TA-125 advanced 0.65% to 3,069.94, supported by broad market strength.
• Banking and balanced sector indices also saw robust gains, while bond indices traded flat to slightly higher.

Overall trading volume was strong, signaling investor confidence ahead of key domestic economic reports.

Outlook for Wednesday, August 20, 2025

Looking ahead to Wednesday’s session, investors are watching whether U.S. tech stocks can stabilize after Tuesday’s sharp drop. Europe’s earnings-driven momentum could continue to provide support, but Asia’s persistent weakness may weigh on global sentiment.

In Tel Aviv, the market is entering Wednesday on solid footing, with breadth across the TA-35 and TA-125 suggesting continued resilience. Traders will monitor global cues closely, particularly from Wall Street futures and Asian market opens.

With volatility edging higher and currency markets signaling cautious positioning, August 20 could bring another session of mixed performance globally, though Europe and Tel Aviv appear best positioned to extend their gains.