Global Stock Rally Accelerates in Late June: Strong Gains in the U.S., Europe, Asia—and Tel Aviv Joins the Party

Global equity markets surged in the final week of June 2025, with major indices across the U.S., Europe, Asia, and even Israel posting strong gains. Investors embraced a wave of positive macroeconomic data, cooling inflation figures, and growing expectations for interest rate cuts later this year. Easing geopolitical tensions added fuel to the rally, supporting a broad-based advance across sectors.

Wall Street Leads the Charge: Tech and Dow Jones Hit Record Highs

The U.S. stock market was once again in the spotlight, delivering stellar performance across all major benchmarks. The Dow Jones Industrial Average jumped 3.89%, closing at a new high of 43,819.27. The S&P 500 gained 3.41% to finish at 6,173.07, while the Nasdaq Composite soared 4.36% to 20,273.46. The Nasdaq 100, focused on large-cap tech, surged 4.17% to reach 22,534.20.

The Russell 2000, representing small- and mid-cap U.S. companies, also posted a solid 3.18% increase. Contributing factors included cooler-than-expected inflation readings, continued labor market strength, and renewed speculation that the Federal Reserve could begin cutting rates as early as Q4 2025.

Tel Aviv Joins the Rally: Banks, Energy, and Real Estate on the Rise

Israel’s stock market participated in the global momentum. The Tel Aviv 125 Index climbed 2.04%, ending the week at 2,952.41, while the Tel Aviv 35 Index rose 1.56% to 2,904.71.

Leading sectors included banking, energy, and infrastructure. Market sentiment was buoyed by relative calm on the security front and indications of a narrower-than-expected fiscal deficit. Real estate stocks also rallied on hopes that the Bank of Israel may ease monetary policy in the coming months amid signs of inflation moderation.

European Markets March Higher: DAX and Euro Stoxx 50 Advance Strongly

European equities posted healthy gains as well. Germany’s DAX led the way, adding 3.40% to close at 24,033.22, while France’s CAC 40 gained 1.88% to reach 7,691.55. The pan-European Euro Stoxx 50 climbed 1.94% to end the week at 5,325.64.

European stocks were lifted by stronger-than-expected manufacturing and employment data, along with solid earnings reports from the banking sector. Falling bond yields across the eurozone added further support to equities as investors reallocated capital away from fixed income.

Asia Powers Ahead: Japan’s Nikkei Hits New Record, Hong Kong Rebounds

In Asia, the Nikkei 225 in Tokyo delivered one of the strongest performances globally, surging 4.94% to a record 40,150.79. The move was driven by a weakening yen, strong export growth, and continued fiscal stimulus from the Japanese government.

Hong Kong’s Hang Seng Index also rallied, jumping 4.07% to 24,284.15, following announcements of additional Chinese government measures to support the property and tech sectors. The rebound helped lift sentiment across the region after months of underperformance.

Key Drivers Behind the Rally: Inflation, Rates, and Geopolitical Relief

Several major factors contributed to the synchronized rally across global markets:

1. Cooling Inflation: Core consumer price data in the U.S., EU, and Israel came in softer than expected, boosting confidence that central banks may pivot to rate cuts.
2. Falling Bond Yields: Long-term interest rates in the U.S. and Europe retreated, increasing the appeal of equities.
3. Geopolitical Easing: De-escalation in Middle Eastern tensions—especially between Iran and Israel—helped reduce volatility in commodity markets and investor sentiment.

Together, these elements created an environment ripe for renewed risk-taking.

Sector Watch: Technology, Financials, and Consumer Discretionary Shine

In the U.S., technology stocks led the way, with sharp weekly gains for NVIDIA, Apple, AMD, and Tesla. Financials outperformed as well, benefiting from attractive yield spreads and strong profit margins.

In Israel, banking stocks saw notable double-digit gains since early June, with Leumi and Discount Bank among the top performers. Real estate equities rebounded on growing expectations for falling mortgage rates and a more dovish stance from the central bank.

What’s Next? Fed Minutes, Israeli Labor Data, and Earnings Season

The coming week will be packed with key economic events and potential market movers:

• In the U.S., the FOMC minutes will shed light on internal Fed debates over the timing of interest rate cuts.
• In Israel, labor market data, including unemployment and wage growth, will influence the Bank of Israel’s rate outlook.
• In both the U.S. and Europe, Q2 earnings season will begin, with analysts expecting strong results from energy and banking firms.

Summary: A Bullish Week Across the Board—Is This the Start of a Summer Rally?

The past week marked a significant turning point for global equity markets. Investors were encouraged by improved data, lower inflation, and more accommodative policy signals. With major indices breaking out to new highs and volatility retreating, confidence appears to be returning.

The key question going forward: Is this a temporary bounce—or the beginning of a sustained summer rally?

Either way, the global market landscape closes June on a high note, giving investors renewed optimism as they look ahead to Q3.