Tel Aviv Stocks Slip as Data-Center Tax Fears and a Teva Retreat Weigh

Trading in Tel Aviv took place during a period of instability in global markets, with the shekel weakening and the United States dollar rising above 2.96 shekels as investors awaited American inflation data, Globes reported. The benchmark indexes declined while oil and gas shares advanced on higher energy prices.

Developers of data centers declined significantly on news that Israel's Finance Ministry is weighing a special tax on server farms, according to a separate Globes report. The expectation of a wave of construction tied to artificial intelligence had lifted energy-related stocks, but officials are concerned about the strain those facilities place on the electricity grid. An interministerial team is studying the issue, and the prospect of a levy unsettled the market.

Adding to the corporate pressure, the pharmaceutical company Teva said it will gradually lay off about 250 workers in Israel across its active-ingredients division, known as TAPI, after a planned sale of the unit failed to close, Globes reported. The cuts will mainly affect the Teva Tech site at Neot Hovav.

Together the developments show a market absorbing several distinct pressures at once. They include a war-driven rise in energy costs, policy uncertainty over how to tax the artificial-intelligence buildout, and individual corporate restructuring. The weaker shekel and the focus on United States inflation tie local sentiment directly to the global rate outlook.