Israeli financial markets closed Tuesday, January 6, 2026, with a strong continuation of the new-year rally as investors built on Monday’s gains and leaned further into risk assets. Trading on the Tel Aviv Stock Exchange reflected confident positioning, with equities posting broad advances and bond markets maintaining a constructive, steady tone.

TA-35 Leads as Blue Chips Drive the Upside

Large-cap stocks delivered an outsized performance, anchoring the day’s gains. The TA-35 jumped 2.86 percent to close at 3,845.39 points, marking one of its strongest sessions in recent months. Advancers outnumbered decliners by a wide margin, with 24 stocks higher against just nine lower, signaling decisive buying interest rather than a narrow rebound.

The strength in blue chips suggests renewed confidence in Israel’s largest and most liquid companies, often a prerequisite for sustained market advances. Financial and industrial heavyweights played a central role, helping pull the index higher and providing stability beneath the rally. With equity turnover exceeding 5.4 billion shekels across the market, the move was supported by meaningful volume, underscoring institutional participation.

Mid-Caps and Banks Confirm Broad Risk Appetite

Beyond the headline index, performance remained impressively broad. The TA-90 rose 1.72 percent, while the combined TA-90 and Banks index gained 2.20 percent. This pattern indicates that investors are not limiting exposure to defensive leaders but are extending allocations into growth-oriented and domestically focused names.

The TA-125 advanced 2.55 percent, with 83 advancing securities versus 35 decliners. Value stocks also participated, as the TA-125 Value Index climbed 1.38 percent, while the TA Sector-Balance Index gained 1.95 percent. This balanced advance across styles and sectors is often interpreted as a sign of healthier market dynamics, reducing the risk that the rally is driven by short-term positioning alone.

Bond Market Stability Reinforces Supportive Backdrop

Fixed income markets added to the constructive tone, albeit with more modest gains. Short-term bonds edged up 0.01 percent, while the All-Bond General Index rose 0.12 percent. Inflation-linked bonds also finished higher, with both Tel Bond-Adjacent A and Tel Bond 60 Inflation-Linked posting small but consistent advances.

Bond market turnover was notably strong, exceeding 8.35 billion shekels and surpassing equity turnover for the session. The parallel strength in equities and bonds suggests that liquidity conditions remain supportive and that investors are deploying capital rather than shifting defensively. This environment typically aligns with expectations of stable monetary conditions and contained near-term macro risks.

Looking ahead, investors will be watching closely to see whether this two-day surge evolves into a sustained early-2026 trend or begins to consolidate after the sharp gains. Key areas to monitor include follow-through volume, leadership from banks and large-cap stocks, and movements in bond yields that could influence relative asset attractiveness. Opportunities may emerge if breadth remains strong and pullbacks are shallow, while risks would rise if global volatility or geopolitical developments disrupt the current risk-on momentum. The coming sessions should provide clearer signals on whether Israel’s market is entering a durable expansion phase or pausing after an aggressive start to the year.