Major indices saw steep declines after the opening bell, falling by nearly 3%. This represents a very steep drop for the major stocks, for which every fraction of a percent entails the liquidation of significant capital. The TA-90 index, the most popular index on the exchange in recent years, is shedding almost 3% and is thereby completing a decline of over 5% since Prime Minister Benjamin Netanyahu's warning on Monday that Israel should brace for international isolation and make sure it won't have to rely on the world for trade, to the point of adopting some autarkic economic postures. Netanyahu's speech was full of pessimism, with warnings that 'Israel is facing diplomatic isolation, we will have to deal with a closed economy," referring to the ongoing attitude by some countries to limit trade with Israel over the war in Gaza. But several hours later, after the surprise among the public in the media, he stressed that he was very optimistic about the prospects of Israel's economy, saying "Israel is the best place to invest" and that he was opposed to Israeli severing its trade ties with the world. "Israel's stock market is the strongest in the world; the shekel has become stronger and the deficit has shrunk despite the war...investing in Israel is the smart thing to do." He said that he meant to sound the alarm to the efforts by Iran and other countries to place an economic siege on Israel, "but we broke free."

In the trading rooms of the large banks, it is said that mutual funds, reflecting the activity of the general public, are particularly active on Tuesday. Sources in the trading rooms indicate that a substantial number of sell orders built up overnight in the mutual funds, and investment managers are liquidating assets to prepare for continued offerings until the afternoon, which is when the window closes for submitting additional sell or buy orders for the day.

At the same time, it is important to note that at this point, there were almost no visible activity from the institutional investors, which typically acquire assets when the public sells them off. In theory, should the declines deepen, an investment opportunity would arise for investment managers, known as "strong hands," but this remains theoretical, as a common adage in the capital market suggests that "one should not attempt to catch a falling knife." The Israeli stock market, despite the almost two-year war since Oct. 7, 2023, has largely outperformed the rest of the world since then.

Insurance stocks were leading the declines at the opening, having already been trading with volatility of late, with Harel's stock dropping by almost 1.5% and Clal Insurance decreasing by more than 1%. The stock of Azrieli, one of Israel's largest shopping mall operators, has also slipped by approximately 1% amid fears of a negative impact on Israelis' purchasing power.

Teva is down 2.4%, extending the stock's recent falls, which are driven by concerns that insurance companies worldwide will, for diplomatic and political considerations, favor recommending prescriptions from rival firms. Conversely, shares of Elbit Systems are up by nearly 1%, based on the belief that for the weapons maker, such days are actually beneficial for business.

In the bond market, price decreases were also noted, aligning with the working hypothesis that mutual funds are accumulating cash Tuesday out of concern for significant redemptions by the end of the day.

The post Stocks dive at opening after PM doom and gloom speech appeared first on www.israelhayom.com.

The major indices showed gains of approximately 0.7% in pre-market trading, signaling potential relief after Friday's broad selloff that followed Trump's tariff announcements and weak labor market data, according to the Wall Street Journal.

Trump revealed Sunday that he would name a new director for the Bureau of Labor Statistics within days after dismissing the previous chief in the wake of Friday's jobs report. The president also indicated he would soon announce a replacement for Adrian Kugler, the Federal Reserve governor who resigned unexpectedly during the previous week.

The developments come as financial markets face a critical Thursday deadline when substantial tariffs are scheduled to take effect on numerous countries, creating uncertainty about global trade relationships and economic growth prospects.

Treasury bond prices declined Monday morning, pushing 10-year yields to approximately 4.25%, according to the Wall Street Journal. The previous week witnessed Treasury yields posting their most significant weekly decreases since early April.

Currency markets showed the dollar gaining strength against the Swiss franc, while European and Asian equity markets displayed mixed performance. Swiss stocks fell upon reopening after a holiday, reflecting a delayed reaction to Trump's unexpectedly high tariffs on Switzerland announced earlier.

Japan's Nikkei 225 faced pressure from the strengthening yen, while other regional markets generally posted gains.

Oil futures traded lower in volatile conditions following Sunday's agreement by eight OPEC+ countries to increase output beginning in September. The production increase aligned broadly with market expectations but contributed to downward pressure on crude prices.

Bitcoin prices edged higher to around $114,500, continuing the cryptocurrency's recent trading patterns amid broader market uncertainty.

This week's economic calendar includes the ISM purchasing managers index for services and weekly initial jobless claims data. Corporate earnings reports are expected from Palantir Technologies and Tyson Foods on Monday, followed by Advanced Micro Devices, McDonald's Corporation, Walt Disney Company, and Uber Technologies later in the week.

The personnel changes at federal agencies responsible for economic data collection and monetary policy could influence how markets interpret future government statistics and Federal Reserve decisions.

Markets appeared to view the leadership changes as potentially favorable for business-friendly policies, though concerns remain about the independence of traditionally non-partisan economic institutions.

The Thursday tariff deadline represents the next major test for markets already experiencing volatility from trade policy uncertainty and mixed economic signals.

The post Stock futures climb as Trump eyes Thursday tariff deadline appeared first on www.israelhayom.com.

The generic drug maker Teva Pharmaceuticals agreed Monday to pay $225 million to settle price-fixing charges related to sales of a major cholesterol-lowering drug. The US Department of Justice said the agreement also requires Teva to divest its business making and selling the drug, pravastatin, a generic version of the brand-name medicine Pravachol.

Follow Israel Hayom on Facebook, Twitter, and Instagram

Another generic drug maker, Glenmark Pharmaceuticals, agreed to pay a $30 million criminal penalty and to divest its pravastatin business as well.

Video: Nasdaq rallies as Nvidia, tech jump; investors look toward Jackson Hole / Credit: Reuters

In a statement, the US arm of Israel-based Teva blamed a single former employee for striking agreements with Teva competitors that limited competition between 2013 and 2015. That employee left the company in 2016, Teva said.

DOJ had charged seven generic drug makers, including Teva and Glenmark, with price fixing, bid rigging, and market allocation schemes. The seven companies have settled their cases with deferred prosecution agreements. Had any of the cases gone to trial, guilty verdicts could have led to mandatory bans from participation in Medicare, Medicaid, and other federal health programs.

The companies collectively agreed to pay $681 million in fines in addition to other penalties.

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

The post Teva to pay $225M to settle cholesterol drug price-fixing charges appeared first on www.israelhayom.com.

A serious problem in the Tel Aviv Stock Exchange computer system brought trading to a halt for approximately half an hour on Thursday afternoon.

The TASE said that the source of the problem was under investigation.

Follow Israel Hayom on Facebook and Twitter

Experts were looking at every scenario, including the possibility that the TASE had been targeted by a cyberattack.

Trading has reopened. Shortly before the close of business on Thursday, it was unclear if and how the snafu had affected investors or whether it had caused major economic damage.

Prior to the system being taken offline, the TASE's main indices were up by some 0.8%, a reflection of investor optimism following progress toward vaccines.

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

The post Did cyberattack stop trading on Tel Aviv Stock Exchange? appeared first on www.israelhayom.com.

The iPhone maker reached the $2 trillion milestone in Wednesday's early stock market trading when its shares surpassed $467.77.

 Follow Israel Hayom on Facebook and Twitter

The stock later backtracked to close at $462.83, but it didn't diminish a remarkable achievement that came just two years after Apple became the first US company with a $1 trillion market value. It comes amid a devastating pandemic that has shoved the economy into a deep recession and caused unemployment rates to soar to the worst levels since the Great Depression nearly a century ago.

But Apple and other well-established tech giants such as Microsoft, Google, Amazon, Facebook and Netflix have thrived during the upheaval as the pandemic has forced millions of people to work, attend classes, shop and entertain themselves at home. That, in turn, has made technology even more crucial, a factor that has caused investors to snap up the stocks of the industry's biggest players, as well as relative newcomers, such as video conferencing service Zoom, which has seen its shares quadruple so far this year.

Apple's stock has climbed nearly 58% this year. In recent weeks, the rally has been bolstered by excitement over a four-for-one stock split that Apple announced late last month in an effort to make its shares more affordable to a wider swath of investors.

The broader boom in tech stocks also has helped the benchmark S&P 500 index reach new highs after steep declines earlier in the year. Apple, Microsoft, Amazon, Facebook and Google's parent company, Alphabet account for nearly 23% of the S&P 500's entire value.

Subscribe to Israel Hayom's daily newsletter and never miss our top stories!

Apple isn't the first company in the world to reach a market value of $2 trillion. That honor belongs to energy producer Saudi Aramco, which attained it in December 2019. Saudi Aramco now trails Apple with a market value of about $1.8 trillion.

Now that technology has clearly become the oil of the 21st century, other industry leaders could soon be joining Apple in the $2 trillion club. Many industry analysts are predicting Amazon, Microsoft and Alphabet could eclipse the milestone in the upcoming months too.

The post Apple reaches $2 trillion market value as tech fortunes soar appeared first on www.israelhayom.com.