Israeli financial markets closed today, February 24, 2026, with a pronounced and broad-based selloff that erased recent gains and shifted short-term sentiment sharply lower. The downturn affected nearly every segment of the equity market, while bonds also came under pressure, reflecting a session dominated by aggressive de-risking.

Equities Experience Heavy Selling Across the Board

The Tel Aviv-35 index dropped 1.75 percent, marking one of the sharpest single-day declines in recent weeks. Only six stocks advanced within the index, while twenty-nine declined, highlighting the intensity of selling pressure among large-cap names.

Mid-cap stocks faced even steeper losses. The Tel Aviv-90 index plunged 3.01 percent, with just seven advancing stocks compared to seventy-seven decliners. The combined Tel Aviv 90 and banking index fell 2.71 percent, indicating that financial shares were not spared in the downturn.

The broader Tel Aviv-125 index declined 2.10 percent, confirming that weakness was widespread. Market breadth deteriorated significantly, with declining stocks outnumbering advancers by a wide margin across nearly all benchmarks. Equity market turnover reached approximately 4.65 billion shekels, reflecting strong participation in the selloff.

Value and Sector-Balance Indices Lead the Decline

Value-oriented stocks experienced the sharpest losses among major segments, falling 3.62 percent. The limited number of advancing stocks in this category underscores the scale of profit-taking and risk reduction.

The sector-balance index declined 2.64 percent, reflecting broad weakness across industries. Selling was not concentrated in a single sector; instead, it affected multiple segments simultaneously. Such synchronized declines often signal a shift in short-term sentiment rather than isolated sector-specific concerns.

The sharp drop in value stocks suggests investors moved to reduce exposure to previously favored positions. The scale of the retreat points to a meaningful reassessment of risk appetite following last week’s incremental gains.

Bond Markets Also Under Pressure

Unlike typical risk-off sessions where bonds benefit from safe-haven flows, fixed income markets also weakened. The general bond index declined 0.17 percent, while inflation-linked bonds fell between 0.28 and 0.29 percent. Short-term bonds edged down 0.03 percent.

Bond market turnover reached approximately 6.01 billion shekels, indicating active trading. The broad decline across bond categories suggests that today’s pressure extended beyond equities, reflecting a more generalized adjustment in portfolios.

The absence of a strong bond rally may indicate liquidity adjustments or broader risk repositioning rather than a straightforward flight to safety. While declines in bonds were moderate compared to equities, the weakness underscores the intensity of today’s market shift.

Forward-Looking: Assessing Volatility, Support Levels, and Risk Signals

Looking ahead to the next trading session, investors will closely monitor whether today’s sharp decline stabilizes or triggers follow-through selling. Key support levels in large-cap stocks will be critical in determining short-term direction. A failure to hold these levels could extend volatility.

Mid-cap and value stocks will remain important sentiment indicators. Continued weakness in these segments may signal sustained risk aversion, while a rebound could suggest that today’s move was an overreaction or technical reset.

Bond market behavior will also provide insight. If fixed income stabilizes or strengthens, it may indicate defensive positioning. However, further weakness in bonds could reflect broader market recalibration.

Opportunities may emerge if valuations reset to more attractive levels, particularly in fundamentally strong companies. Risks remain elevated if volatility accelerates or external factors amplify uncertainty. The next session will be pivotal in determining whether the market enters a deeper correction phase or begins to stabilize after this significant pullback.