A year of dreams: How the Tel Aviv Stock Exchange left the world in the dust

The Tel Aviv Stock Exchange closes an exceptionally strong year, with the flagship TA-35 and TA-125 indices outperforming Wall Street and Europe in returns. The TA-35 surged by about 37% and the TA-125 by about 30%, compared to gains of about 20% in the Nasdaq and 17% in the S&P 500. The decline in inflation and the rally that began with Operation "With All the Lion" provided tailwinds. However, trading closed sharply lower today against the backdrop of US inflation data.

The Tel Aviv Stock Exchange is wrapping up an exceptionally strong year, in which the local flagship indices beat Wall Street and Europe. The TA-35 index surged by about 37% and the TA-125 strengthened by more than 30%, compared to more moderate gains in the US (Nasdaq about 20%, S&P 500 about 17%) and Europe (British FTSE about 15%, German DAX 7%, French CAC 6%). The rally began in June 2025 with Operation "With All the Lion", and was accompanied by a significant decline in inflation. However, trading closed sharply lower today against the backdrop of the publication of the US Producer Price Index and continued strengthening of oil prices. The insurance index led with a return of more than 70%, followed by the Cleantech index with about 52%. In contrast, the defense index, launched at the beginning of winter, lost ground and traded below its opening level. Real estate and construction stocks struggled to show significant performance. In Asia, Japan's Nikkei index surged by almost 50% thanks to demand for artificial intelligence infrastructure, surpassing Tel Aviv. The Korean and Taiwanese indices also recorded sharp gains.