Tel Aviv Stock Exchange hits all-time highs amid optimism over Trump’s Gaza plan

Shares on the Tel Aviv Stock Exchange hit fresh all-time highs amid investor optimism over US President Donald Trump’s plan to end the war in Gaza, return all hostages, and bring peace to the region.

The Tel Aviv Stock Exchange’s benchmark TA-125 index jumped 3.1% at the close of trading in Tel Aviv. The index has soared about 30% from the start of the year, hitting numerous record highs over the past weeks.

The TA-35 index of blue-chip companies rose 2.8%. The TA-90 index, which tracks the shares with the highest capitalization not included in the TA-35 index, increased 4%. The TA-Construction index leaped 7.6% and the TA-Insurance index was up 6.5%.

At a White House press conference on Monday, Trump, alongside Prime Minister Benjamin Netanyahu, unveiled a US-led proposal to end the war with the Hamas terror group in Gaza. Hamas is reportedly examining the proposal and is expected to deliver its response in a matter of days.

“The market is still pricing in, and rightly so, a great deal of caution given the fact that it takes two to tango…we are all eagerly awaiting Hamas’s response,” says Yaniv Pagot, VP of Trading at the Tel Aviv Stock Exchange.

“If the response is positive, there is room for the trend of recent days to continue, as it is radically changing the economic and security horizon of Israel for the foreseeable future, and is expected to affect both fiscal policy, as well as monetary policy,” Pagot says.

From the beginning of 2025, the Tel Aviv-125 Index has broken its all-time high 36 times, according to Tel Aviv bourse data.

“The record-breaking performance of the local stock exchange in these challenging times is an indicator of the resilience of the Israeli economy and local public companies and an optimistic view of the future,” the Tel Aviv bourse says in a statement.