Shares on the Tel Aviv Stock Exchange dropped sharply as investors reacted to escalating global trade tensions sparked by the Trump administration’s new tariff policy.
The benchmark TA-125 index fell 3.8%, following a modest 0.4% decline the previous week. The TA-35 index of leading blue-chip companies slid 3.6%, while the TA-90 index — which tracks high-cap companies outside the TA-35 — tumbled nearly 4.5%. The Insurance and Financial Services index posted the steepest loss, plummeting 4.6%.
The selloff mirrored steep declines in global markets. On Friday, the S&P 500 saw its worst single-day drop since June 2020, falling nearly 6%, while the Dow Jones Industrial Average slid 5.5%. These losses came after China imposed a 34% tariff on U.S. goods, retaliating against President Trump’s sweeping tariffs on products from roughly 60 countries, including China.
“The tariff plan presented by Trump, which was published on Wednesday evening, led to declines on Thursday on all world markets, including Israel,” the Tel Aviv Stock Exchange noted in a statement.
Market volatility in Israel was also fueled by renewed fighting in Gaza and ongoing domestic political uncertainty, adding to investor unease.
With tensions rising and global markets rattled, investors remain wary of further economic fallout from an escalating trade war.
