Mexican Stock Market Surges Amidst Declining US Indicators
The Mexican stock market began Monday with gains, continuing the trend from the previous week as both international and local economic landscapes remained in focus.
- S&P/BMV IPC: Gained 0.87% to operate at 58,493.39 points.
- FTSE-BIVA: Increased 0.88% to reach 1,180.87 points.
This marked the sixth consecutive day of advances, with the IPC operating at its best level since February 2024 and the FTSE-BIVA touching its highest score since May 2024.
The market took into account that the Indicator of Opportune Economic Activity showed stagnation in April, while March’s performance was revised downward.
US Markets Pressured by Credit Rating Downgrade
Moody’s lowers US credit rating to “Aa1” from “Aaa”, citing the massive $36 trillion federal debt and interest payments.
Market operators remained attentive to potential trade agreements the US might negotiate with various countries, new tariffs, or progress in talks with key players like China.
Wall Street Presionado
US stocks end nearly flat as market sentiment weakens due to federal government’s credit rating downgrade caused by its enormous debt.
- S&P 500: Increased 0.09% to 5,963.59 points.
- Nasdaq Composite: Advanced 0.02% to 19,215.46 units.
- Dow Jones Industrial Average: Rose 0.32% to 42,791.94 points.
Bond yields on 10-year Treasury notes rose due to concerns that the US fiscal bill might increase debt more than anticipated. The yield on benchmark 10-year US notes climbed 2.2 basis points to 4.461 percent.
Donald Trump’s tax-cut bill secured crucial Congressional committee approval on Sunday.
Key Questions and Answers
- What is the current state of Mexican and US stock markets? The Mexican stock market has been on an upward trend, with the S&P/BMV IPC and FTSE-BIVA reaching their best levels in over a year. Meanwhile, US stocks ended nearly flat, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average showing minor gains.
- Why are Mexican stocks performing well? The Mexican market is benefiting from a favorable international and local economic environment, with the Indicador de Oportuna de la Actividad Económica showing stagnation in April, which has not negatively impacted the market’s growth.
- What caused the pressure on US stocks? The pressure stems from Moody’s downgrade of the US credit rating to “Aa1” due to the country’s substantial $36 trillion federal debt and interest payments. Additionally, concerns exist that the US fiscal bill might increase debt more than anticipated.
