The Tel Aviv stock market opened for trading on February 24, 2026, showing a mix of modest gains and losses across major indices. The TA-35 inched up 0.10% to 4,247.73 points, while the TA-90 slipped 0.18% to 4,052.16 points, illustrating selective investor positioning in large-cap versus mid-cap equities. Market participants are navigating a landscape shaped by global macroeconomic factors, domestic monetary policy expectations, and sector-specific dynamics, with trading volumes reflecting a moderate level of activity across both equities and bonds.

Equity Market Performance and Sector Insights

Equity indices presented a nuanced picture as trading began, with the TA-35 showing a small uptick while the broader TA-90 and TA-125 indices registered marginal declines. The TA-90 and TA-125 recorded drops of 0.18% and 0.17% respectively, with the TA-125 Value index down 0.31%, highlighting investor sensitivity to valuation pressures in value-oriented stocks. A total of 16 TA-35 stocks gained versus 18 decliners, indicating that market momentum is currently limited to a narrow set of outperforming blue-chip companies. Sector rotation trends appear to be influencing activity, with technology and healthcare names showing relative resilience compared with cyclical industrials and financials. Daily equity trading volume reached 199,523 thousand shekels, reflecting robust liquidity that supports active positioning by institutional and high-net-worth investors.

Bond Market Trends and Investor Appetite

Fixed-income markets demonstrated stability, with short-term bonds up marginally and inflation-linked instruments maintaining steady performance. The short-term bond index remained unchanged at 467.78 points, while the All-Bond General index increased 0.02% to 424.40 points. Indexed bonds such as the T-Bond-Linked A gained 0.02% to 421.12 points, signaling continued investor demand for inflation-protected and low-risk instruments. Total bond trading volume reached 242,482 thousand shekels, exceeding equity turnover, and suggesting that portfolio managers are emphasizing risk-adjusted returns through bonds as a hedge against potential market volatility. The broader TA-Balance sector index recorded a minor 0.10% decline to 4,898.85 points, reflecting selective allocation adjustments within diversified portfolios.

Market Sentiment and Investor Behavior

Current market sentiment shows cautious optimism, with investors balancing between growth potential in equities and stability in bonds. Rising interest rate expectations and macroeconomic uncertainty are encouraging diversified positioning, with active participation in both sectors. For Israeli investors, the relatively flat performance of the TA-125 and TA-90 indices underscores the importance of sector-specific selection, as mid-cap and value stocks remain sensitive to broader economic indicators. Market psychology suggests that investors are weighing near-term volatility against long-term growth opportunities, particularly in sectors resilient to interest rate changes and geopolitical developments.

Forward-Looking Considerations and Key Factors

Looking ahead, market participants should monitor interest rate announcements, corporate earnings updates, and global economic developments that may influence both equity and bond performance. Key risks include shifts in monetary policy, inflation trends, and external shocks affecting investor confidence. Opportunities may arise from selective sector rotations and continued demand for fixed-income instruments offering predictable yields. Trading activity in the coming sessions will likely reflect ongoing adjustments to these factors, with liquidity conditions and cross-asset correlations remaining critical indicators for both domestic and international investors seeking exposure to Israeli shwa markets.