Red in the eyes: After a positive period, Tel Aviv 35 and bonds are down • Since the beginning of the year, Tel Aviv 35 has fallen by more than 20% • After setting new records: A sharp drop even in the opening of trading on Wall Street
The Tel Aviv Stock Exchange
Photo:
Joshua Joseph
At the end of a long period of increases despite the epidemic, the capital markets in Israel and around the world ended a particularly red and gloomy day yesterday.
On the Tel Aviv Stock Exchange, the leading indices fell by up to 3.4%, and the banks' index fell by more than 4%.
The oil and gas index lost 4.5% of its price.
Tel Aviv 35 virtually wiped out all the increases it had accumulated in July-August.
On a weekly basis, trading was characterized by price declines in all the leading stock indices - in contrast to the global trend.
Price declines characterized the government and corporate bond indices.
The Tel Aviv 35 Index fell by 5.1% this week, and has fallen by 20.4% since the beginning of the year.
The TA 125 index is more than 15% away from its price at the beginning of January.
On Wall Street, the trading day also began with sharp declines of up to 2.7%, after the records were broken on the trading day yesterday.
The leading indices traded at record levels, and NASDAQ soared to more than 12,000 points. The rise stems from the Federal Reserve's announcement of its willingness to be flexible and allow inflation to rise above 2% - contrary to its previous policy.
This means that the Fed will continue to supply oxygen to the markets, thus ensuring the continued rise of stocks and indices.
The various technology companies have recorded slight declines after the peak levels recently reached.
Meanwhile, the U.S. labor market continues to recover, with the number of Americans applying for unemployment benefits last week totaling 881,000 - compared to 995,000 forecasts.
The total number of job seekers is 13.3 million, a decrease of 1.2 million compared to the previous week and a drop of almost 50% compared to May
