Global Markets Kick Off New Month Amid High Bond Yields and Mixed Trends
Global markets opened a new trading month facing geopolitical and bond yield challenges. Tel Aviv shares saw mixed results as major defense and real estate stocks rallied.
Global markets kicked off a new trading month with familiar challenges, including ongoing geopolitical uncertainty, high oil prices, and government bond yields at decades-long highs in the US and other developed economies.
The Tel Aviv Stock Exchange wrapped up September with mixed trends: the TA-35 index rose by about 1.6%, the TA-90 declined by roughly 2.7%, and the TA-125 climbed around 0.5%. In New York, the S&P 500 lost approximately 0.5%, the Dow Jones dropped 4.3%, and the Nasdaq advanced by 1.9%.
Stock Market and Corporate Highlights
Trading in Tel Aviv is expected to open on a positive note, supported by green futures on Wall Street and a slight retreat in bond yields and oil prices. Nasdaq futures rose over 1%, while S&P 500 and Dow Jones futures advanced by about 0.7% and 0.5%, respectively.
Defense-tech firm Smart Shooter saw its shares surge roughly 30% after announcing a strategic contract in the US—the largest in its history. The company was selected as the sole supplier to the US Department of Defense for SMASH anti-drone systems, valued at up to $150 million.
Alrov Properties shares jumped nearly 20% following news that businessman Alfred Akirov submitted a bid to acquire the public stake for 788 million shekels, representing a generous 20% premium.
Bond Yields and Macroeconomic Data
US government bonds remain in focus, with yields hovering near twenty-year highs. The 10-year yield slipped about 2 basis points to 5.278%, while the 30-year yield dipped to 5.62%.
In macroeconomic news, the US Personal Consumption Expenditures (PCE) price index for August rose 3.4% over the past 12 months, coming in significantly below expectations though still above the Federal Reserve's 2% target.
