Global equity markets ended the week with a more constructive but uneven tone as investors selectively increased risk exposure across regions. While volatility moderated and currency markets remained stable, performance dispersion across geographies underscored a market environment driven by rotation and selective confidence rather than synchronized global momentum.

U.S. Markets Highlight Rotation Over Broad Strength

U.S. equities delivered mixed yet informative weekly results. The Dow Jones Industrial Average rose a notable +2.50% over five days, supported by strength in industrials and value-oriented sectors. Small-cap stocks also attracted renewed attention, with the Russell 2000 gaining +2.17%, suggesting investors cautiously broadened risk exposure beyond mega-cap leaders.

By contrast, growth-heavy benchmarks continued to lag. The Nasdaq Composite declined -1.84% on a five-day basis, reflecting ongoing sensitivity to earnings visibility and valuation discipline. The S&P 500 edged marginally lower, slipping -0.10% for the week despite a late-session rebound that reduced overall losses. Market stress indicators remained contained, with the VIX posting a modest five-day move of +1.83%, while the U.S. Dollar Index was largely unchanged at +0.07%.

European Equities Advance on Improving Confidence

European markets recorded solid weekly gains, pointing to improving regional sentiment. Germany’s DAX rose +0.74%, while the UK’s FTSE 100 advanced +1.43%, supported by defensive sectors and stable earnings expectations. France’s CAC 40 outperformed with a +1.81% weekly increase, reflecting renewed momentum across core eurozone markets.

At the regional level, the MSCI Europe Index gained +0.10%, indicating more measured progress when viewed across a broader set of markets. These trends suggest investors are selectively re-engaging with European equities while remaining attentive to growth risks and policy signals.

Asia-Pacific and Israeli Markets Show Divergence

Asian equity markets remained uneven. Japan’s Nikkei 225 posted a strong weekly gain of +3.04%, supported by domestic optimism and currency stability. In contrast, China’s Shanghai Composite declined -1.27%, while South Korea’s KOSPI fell -2.82% and Hong Kong’s Hang Seng Index dropped -3.02%, reflecting continued pressure across North Asian markets.

Israeli equities stood out for their relative stability. The TA-35 index advanced +1.20% over the week, while the broader TA-125 rose +0.83%. These gains point to measured optimism, with investors selectively adding exposure amid improving global sentiment while remaining mindful of regional and geopolitical considerations.

Looking ahead, investors are likely to focus on upcoming macroeconomic data, central bank communication, and geopolitical developments to assess whether this period of reduced volatility can persist. Continued regional and sector rotation may create selective opportunities, while downside risks remain tied to uneven growth signals and shifts in global sentiment. The coming weeks will be critical in determining whether stabilization evolves into broader and more durable market momentum.