Israeli financial markets closed today, February 9, 2026, with a decisive return to positive momentum as investors stepped back into equities following recent volatility. The session reflected renewed confidence, with strong gains across large caps, mid-caps, and sector-balanced indices, while bonds edged lower as capital shifted toward stocks.

Equities Rally Broadly as Confidence Rebuilds

Today’s session marked one of the strongest equity performances in recent days. The large-cap Tel Aviv-35 index surged 1.68 percent, signaling a clear shift back toward risk-taking. Market breadth was firmly positive, with advancing stocks significantly outnumbering decliners, a key indication that the rally was broad-based rather than driven by a handful of heavyweights.

Mid-cap stocks also delivered a strong performance. The Tel Aviv-90 index rose 1.14 percent, while the combined mid-cap and banking index gained 1.29 percent. These moves suggest that investors are once again willing to increase exposure to segments that tend to benefit most when sentiment improves. The broader Tel Aviv-125 index climbed 1.59 percent, confirming that buying interest extended across the market.

Equity market turnover reached nearly 4.0 billion shekels, reflecting meaningful participation. This level of activity supports the view that today’s advance was driven by active positioning rather than low-liquidity price movements.

Value and Sector Balance Indices Lead the Upside

Value-oriented stocks played a central role in today’s rebound. The value index advanced 1.16 percent, recovering a large portion of last week’s losses. This performance suggests that investors are selectively reallocating capital toward stocks perceived as attractively priced after the recent pullback.

The sector balance index gained 1.38 percent, highlighting strong participation across a wide range of industries. Such broad sector involvement often strengthens the sustainability of a rally, as it reduces dependence on a narrow set of leaders. The alignment between value stocks, sector-balanced names, and large caps points to improving internal market structure.

Notably, the rebound was not limited to defensive areas. Growth-sensitive and cyclical stocks also participated, reinforcing the impression that today’s move reflected genuine confidence rather than short-term positioning.

Bond Markets Ease as Capital Rotates to Equities

Fixed income markets showed mild weakness as equities rallied. Short-term bonds slipped 0.02 percent, while the broad bond index declined 0.04 percent. Inflation-linked bonds also moved lower, with several segments down between 0.10 and 0.13 percent.

Despite these declines, bond market turnover remained high at just over 5.0 billion shekels. This suggests active portfolio rebalancing rather than disorderly selling. The combination of strong equity gains and modest bond declines is consistent with a rotation toward risk assets rather than a deterioration in underlying financial conditions.

Importantly, the bond market’s pullback was measured. There were no signs of stress or sharp yield spikes, indicating that liquidity conditions remain supportive and that investor confidence has improved.

Looking Ahead: What to Watch in the Next Trading Session

As markets look toward tomorrow’s session, attention will focus on whether today’s rebound can be sustained or whether investors pause after a strong single-day move. Continued leadership from large-cap stocks will be critical, as stability at these levels could help anchor broader sentiment. Market breadth will also be closely monitored, with a sustained dominance of advancing stocks signaling ongoing accumulation.

Mid-cap and banking shares remain key indicators of risk appetite. Further gains in these segments would suggest that confidence is continuing to rebuild, while renewed weakness could indicate that volatility has not fully subsided. On the fixed income side, investors will watch whether bond prices stabilize, which would suggest that today’s rotation has largely run its course.

Opportunities may emerge if the market can build on today’s momentum, particularly in value and sector-balanced stocks that continue to attract interest. At the same time, risks remain if global sentiment shifts or if profit-taking accelerates after the rebound. Tomorrow’s session should provide important confirmation as to whether this rally marks the beginning of a more durable recovery phase or a short-term reaction within a still-volatile environment.