Global equities closed Tuesday, October 28, 2025, on a mixed but mostly positive note, as optimism in Asia offset weakness in the Israeli market. With major indices in the U.S. and Europe sustaining steady gains and several Asian benchmarks advancing strongly, investors are eyeing October 29 for potential catalysts in earnings and monetary commentary.

U.S. Markets: Tech Strength Keeps Wall Street Afloat

Wall Street ended Tuesday’s session higher, with technology and financial stocks supporting gains despite continued volatility in small-cap names. The Nasdaq rose 0.80% to 23,827.49, driven by large-cap tech leaders benefiting from optimism around earnings season and moderating Treasury yields. The S&P 500 edged up 0.23% to 6,890.89, while the Dow Jones Industrial Average added 0.34% to close at 47,706.37.

The Russell 2000 underperformed, losing 0.55%, signaling some investor hesitation in smaller, domestically focused companies. Meanwhile, the CBOE Volatility Index (VIX) fell sharply by nearly 49%, suggesting a calmer sentiment across U.S. markets.

The U.S. Dollar Index strengthened modestly by 0.16% to 98.82, supported by expectations that the Federal Reserve will maintain higher interest rates for longer. Attention now shifts to upcoming economic data and earnings updates that could set the tone for the remainder of the week.

Europe: Moderate Gains Amid Thin Trading

European equities traded in narrow ranges on Tuesday, with most major indices closing slightly higher. The FTSE 100 gained 0.44% to 9,696.74, helped by banking and energy shares, while the broader MSCI Europe Index dipped 0.02%. The DAX in Germany and France’s CAC 40 slipped marginally by 0.12% and 0.27%, respectively, reflecting mixed corporate results and cautious sentiment ahead of inflation reports later this week.

Currency movements remained relatively muted. The Euro Index inched up 0.04%, while the British Pound Index fell 0.47%, extending recent weakness on softer growth expectations in the UK. The Istanbul Stock Exchange remained closed for Republic Day in Türkiye, limiting regional participation.

Asia-Pacific: Strong Gains, Except Hong Kong Holiday Trade

Asian markets delivered solid gains, led by Japan and South Korea, as investors reacted positively to improved manufacturing data and stabilizing global demand. Japan’s Nikkei 225 surged 1.81% to 51,128.14, buoyed by tech exporters and auto stocks, while the KOSPI climbed 1.18% to 4,057.88 on upbeat earnings from major electronics firms.

China’s Shanghai Composite Index rose 0.37% to 4,002.83, reflecting optimism around Beijing’s latest fiscal stimulus pledges. Meanwhile, Australia’s S&P/ASX 200 slipped 0.96% to 8,926.10 amid weakness in mining and real estate names, partly offsetting broader regional optimism. Hong Kong’s Hang Seng Index was closed for Chung Yeung Day, pausing trading activity for the day.

Israel Market: Sharp Declines in Tel Aviv

The Tel Aviv Stock Exchange closed sharply lower on Tuesday, mirroring cautious investor sentiment. The TA-35 Index fell 0.93% to 3,206.35, while the broader TA-125 declined 0.94% to 3,279.25. Trading volume reached approximately 3.1 billion shekels, signaling active but risk-averse positioning.

Banking and technology sectors led the declines, with 31 out of 35 TA-35 components finishing in negative territory. The bond market was mostly stable, with the short-term bond index edging up 0.10%. Overall, local investors appeared to take profits ahead of upcoming quarterly reports and global monetary announcements.

Outlook for Wednesday, October 29, 2025

As markets transition into midweek trading, investors will monitor corporate earnings, upcoming macroeconomic data, and geopolitical headlines. With Hong Kong and Türkiye returning from holidays, regional liquidity is expected to improve. Analysts anticipate continued resilience in U.S. and Asian equities, while European markets may remain range-bound ahead of fresh economic indicators.

In summary, the global risk appetite appears cautiously constructive. If inflation data confirms cooling trends, it could sustain positive momentum into November. However, elevated interest rates and geopolitical uncertainty remain key headwinds for global markets. Investors are advised to watch credit conditions, central bank commentary, and corporate guidance for clues on near-term direction.