Tel Aviv Stocks Plunge Following Wall Street Losses and Yield Surge

Tel Aviv Stock Exchange indices opened trading today with sharp declines that intensified throughout the session. The steep drops follow overnight losses on Wall Street and come against the backdrop of a surge in bond yields to levels not seen since the 2008 subprime crisis.

Yesterday in New York, trading closed with significant drops in the major indices. The Nasdaq index plummeted by 1.1%, while the S&P 500 fell by 0.75%. The declines accompanied a sharp spike in bond yields, which reached a 19-year high. The yield on the 30-year US Treasury bond rose to 5.44%, while the 10-year yield reached 5.13%.

The surge in yields stems from persistent US inflation that refuses to subside, heightening fears that the Federal Reserve may be forced to raise interest rates once again. This is compounded by the rapidly growing US national debt and geopolitical tensions, which are fueling market anxieties.

Consequently, the Tel Aviv Stock Exchange joined the negative trend. The Tel Aviv 35 index dropped by about 1.3%, the Tel Aviv 125 weakened by nearly 1.5%, and the Tel Aviv 90 lost more than 2%. The declines were led by the Tel Aviv Cleantech index, which includes green energy companies and fell by nearly 4%.

Concurrently, most global stock exchanges turned red, alongside the crypto market. Bitcoin retreated below the $83,000 threshold.