The fall of Nayax: The stock that lost 22% in two days stirs a storm

Hopes for progress that would allow the reopening of the Strait of Hormuz did not last throughout the trading day on Wall Street. The major indices, which enjoyed a more positive atmosphere earlier, moved to declines after Iran clarified that the strait would remain closed as long as its demands were not met.

At the end of trading, the S&P 500 index fell by 0.3%, the Nasdaq lost 0.6%, while the Dow Jones index remained unchanged. Technology and communication services stocks stood out on the negative side: Alphabet lost 3% and AppLovin fell by 5%. Apple also fell by more than 1%.

Parallel to the weakness in the stock market, oil prices returned to rise. A senior official in Iran's Supreme National Security Council clarified that the Strait of Hormuz would not be reopened until Tehran receives a response to its demands. US WTI oil futures rose by about 1% and traded above 83 dollars per barrel, and the price of a Brent barrel climbed by about 1% to a level of more than 88 dollars.

Earlier in the day, there was actually a moderation in oil prices following signals that arrived from Pakistan regarding the possibility of a settlement. Later, the trend changed following the Iranian message that the strait would remain closed if the US did not meet the conditions set by Tehran.

Israeli stocks on Wall Street also attracted attention. Elbit fell sharply despite reporting strong results and a further increase in the order backlog, which reached a record of 32 billion dollars, compared to 28 billion dollars at the end of last year.

eToro also traded with declines after announcing an agreement to acquire the American brokerage TradeZero in a deal worth up to 231 million dollars, which will be executed in cash and shares. The deal is intended to support the expansion of eToro's operations in the US and Canada.

Nayax also continued the negative trend and completed a decline of more than 22% within two days. Despite the fall, the investment house William Blair maintained its "outperform" recommendation for the stock and estimated that the decline following the reports might create a buying opportunity.

Intel was also at the center of trading, having raised 20 billion dollars through a stock offering. The offering price was set at 95 dollars per share, a price reflecting a discount of 6.5% compared to the closing price on Friday. According to the details published, the demand for shares as part of the fundraising exceeded the 100 billion dollar mark.

Now, investors' attention is shifting to inflation data in the US. The Consumer Price Index for July is expected to be published tomorrow, and the Producer Price Index is expected to be published on Thursday. The data comes after the weak employment report published recently, while the rise in oil prices renews concerns about price pressures and complicates the situation facing the Federal Reserve.