Weekly Market Overview – Week Ending July 6, 2025

United States: Continued Gains Amid Rising Volatility

Another positive week was recorded in U.S. capital markets.
The Nasdaq led with a 1.02% gain, mirrored by the Russell 2000, indicating optimism also among small-cap growth stocks.
The S&P 500 rose by 0.83%, and the Dow Jones added 0.77%.

However, the VIX index—Wall Street’s fear gauge—jumped by 6.72%, reflecting growing expectations of volatility, possibly in anticipation of upcoming inflation data or increased sensitivity to geopolitical risks.

Europe: Broad Declines Due to Slowing Growth Concerns

Major European markets pulled back this week.
The Euro Stoxx 50 fell 1.02%, the German DAX dropped 0.61%, and France’s CAC 40 declined 0.75%.
The MSCI Europe Index shed 0.23%.

These declines stem from intensifying concerns over economic slowdown, weakening consumption and exports, and a continued tight monetary policy stance by the European Central Bank.

Asia: Mixed but Leaning Negative – Korea and Currency Pressure

Asian equity markets posted a mixed performance for the week.
Shanghai’s index rose 0.32%, while Hong Kong’s Hang Seng slipped 0.64%.
Japan’s Nikkei 225 remained flat with a marginal 0.06% gain.

Of particular concern was South Korea’s KOSPI, which fell sharply by 1.99%, likely due to a drop in semiconductor exports and a strengthening U.S. dollar.
Regional currencies, including the Japanese Yen and Australian Dollar, weakened, which may prompt action from central banks in the region.

Commodities: Relative Stability in Gold – Energy and Metals Fall

The commodity markets were relatively stable overall.
Gold rose slightly by 0.11%, while silver was virtually unchanged.

Oil prices declined by approximately 0.74%–0.75%, with Brent crude falling to $68.29 per barrel.
The decline is attributed to falling global demand coupled with increased supply.
Copper, often viewed as a barometer for industrial activity, dropped 1.54%, signaling concerns over a slowdown in China.

Currencies & Bonds: Dollar Holds Firm – Yields Remain Elevated

The U.S. Dollar Index rose 0.02%, maintaining its strength.
The EUR/USD pair gained 0.15%, while the Japanese Yen continued to weaken against the dollar.

In the U.S. bond market, yields remained steady:

• 10-year Treasury hovered around 4.34%
• 30-year Treasury held at 4.86%

The bond market is currently pricing in stable rates, though with a slight upward bias.

U.S. Sectors: Traditional Sectors Outperform

This week’s sector performance continued to favor traditional industries.
Industrials led with a +12.41% YTD return, followed by Financial Services at +11.64%, and Communication Services at +11.36%.
In contrast, Healthcare remains the weakest sector YTD, down -1.27%, despite long-term demographic tailwinds and persistent demand.

Israel: Strong Broad-Based Rally in Equities

Tel Aviv’s stock market had one of its strongest weeks in recent memory, with sharp gains across all major indices.

Investor sentiment was boosted by expectations for interest rate cuts later in the year, a shift of capital back to equities, and temporary dollar weakness.

• TA-125 surged 4.80%
• TA-90 jumped 5.59%
• TA-35 advanced 3.99%
• TA Banks Index rose approximately 4.64%
• TA Construction Index climbed 5.10%

Trading volume remained high, with financials, energy, and real estate sectors leading the gains.
Investors have started reallocating funds from bonds into stocks, anticipating a swift recovery in corporate profitability.

Summary

The past week reflected mixed trends globally.
The U.S. maintained its upward momentum, although volatility rose.
Europe displayed weakness amid macroeconomic concerns, and Asia showed early signs of growth deceleration.
Falling oil and copper prices suggest mounting pressure on global demand.