The Tel Aviv Stock Exchange opened the week in negative territory Sunday, as renewed U.S.-China trade tensions rattled global markets and triggered broad selloffs in Israeli equities.
The TA-35 index dropped 2% at the open but later trimmed losses, down 1.3% as of midday. The TA-90 index was down 0.6% and the TA-125 index slipped 1.1%. Technology stocks led the declines, with the TA-Technology index falling 2.5% and the TA-Tech Elite index down 2%.
Notable losses included Nova (-6%), Camtek (-5.2%), SHVA (-5.1%), Blade Ranger (-5%) and Israel Shipyards (-4%).
The downturn followed sharp comments from U.S. President Donald Trump, who on Friday announced a 100% tariff hike on Chinese exports in response to Beijing’s decision to restrict exports of rare earth minerals—critical components in global tech manufacturing. Trump also threatened new export controls on aircraft and parts.
In a social media post, Trump said China had begun notifying countries of its intent to impose broader export restrictions on rare earth-related materials. He expressed surprise at the move, citing what he described as recently “very good” relations with Beijing.
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Chinese leader Xi Jinping and US President Donald Trump
(Photo: Shutterstock, AFP / JOHN HAMILTON / US DEPARTMENT OF DEFENSE, AP Photo/Alex Brandon)
The remarks triggered steep losses on Wall Street on Friday. The S&P 500 fell 2.7%—its largest single-day drop since April. The Dow Jones Industrial Average dropped 1.9% and the tech-heavy Nasdaq slid 3.6%. Investors shifted to safe-haven assets, including gold and U.S. Treasury bonds, while the U.S. dollar weakened against a basket of major currencies.
A sharp turn from last week's gains
The negative momentum in Tel Aviv marked a reversal from the previous trading day, when Israeli markets surged following Trump’s announcement that Israel and Hamas had reached the first phase of a ceasefire deal.
On that day, the TA-35 index jumped 2.2%, the TA-90 soared 4.5% and the TA-125 climbed 2.8%. Real estate stocks were the session’s top performers, with the TA-Construction index rising 9% and the TA-Real Estate index up 6.6%.
Shares of Ashstrom surged over 15%, Prashkovsky rose 14% and Israel Canada gained 12.8%. In contrast, travel, aviation and defense companies slumped. Isrotel fell 6.4%, El Al dropped 6.2% and defense contractor Aryt Industries declined 2%.