Israeli financial markets closed today, February 18, 2026, with renewed upside momentum as equities recovered from the prior session’s mixed tone. The rally was led by large-cap stocks and supported by steady participation across most sectors, while bond markets edged lower in a sign of mild risk rotation.

Large Caps Drive Market Higher

The Tel Aviv-35 index rose 0.87 percent, delivering the strongest performance among the major benchmarks. Advancing stocks comfortably outpaced decliners within the index, reflecting concentrated strength in heavyweight companies. This leadership from large caps provided a firm foundation for the broader market.

The Tel Aviv-125 index gained 0.83 percent, confirming that the upward move was not isolated to a handful of blue-chip stocks. While the number of declining shares remained significant, advancing stocks regained dominance compared to the previous session, indicating improved internal momentum.

Mid-cap stocks posted more moderate gains. The Tel Aviv-90 index climbed 0.50 percent, with advancing and declining shares nearly balanced. The combined Tel Aviv 90 and banking index also added 0.50 percent, suggesting steady performance from financial shares without aggressive buying pressure.

Value and Sector-Balance Indices Show Steady Progress

Value-oriented shares rose 0.30 percent, marking a recovery after recent weakness. While the gain was not dramatic, it reflects stabilization in a segment that had previously faced selling pressure. The balanced ratio of advancing to declining stocks in the value index suggests cautious optimism rather than strong conviction.

The sector-balance index gained 0.77 percent, reinforcing the impression of broad participation across industries. Gains were spread across multiple sectors, reducing reliance on a single theme or defensive rotation.

Overall, the equity market displayed a healthier structure compared to the previous session. The improvement in large caps combined with steady mid-cap performance suggests that investor confidence is gradually rebuilding.

Bond Markets Ease as Equities Attract Flows

In contrast to equities, fixed income markets experienced modest declines. The general bond index slipped 0.10 percent, while inflation-linked bonds declined between 0.05 and 0.24 percent. Short-term bonds edged up slightly by 0.01 percent, indicating stable demand at the short end of the curve.

The decline in bonds alongside equity gains suggests a mild rotation toward risk assets. However, the moves were contained and orderly, pointing to balanced capital flows rather than aggressive repositioning.

Bond market breadth showed more decliners than advancers, but there were no signs of stress or unusual volatility. Liquidity conditions remain stable, supporting both asset classes despite minor adjustments.

Forward-Looking: Assessing Momentum and Rotation Signals

Looking ahead to the next trading session, investors will focus on whether large-cap leadership can continue. Sustained gains in blue-chip stocks could provide the necessary anchor for broader indices to challenge recent highs.

Mid-cap performance remains a key barometer of risk appetite. A stronger advance in this segment would signal expanding participation, while renewed weakness could limit upside potential. Market breadth trends will also be closely monitored, as consistent dominance of advancing stocks would reinforce bullish momentum.

On the bond side, stabilization after today’s decline would confirm that fixed income markets remain orderly. A sharper drop in bonds could indicate stronger rotation into equities, while renewed bond strength might reflect rising caution.

Opportunities may emerge if sector-balanced and value stocks continue to firm. Risks remain tied to potential external volatility or sudden shifts in investor sentiment. The next session should provide further clarity on whether today’s rebound marks the start of another upward leg or remains part of a gradual consolidation phase.