Key Players and Their Actions
The U.S. stock market reached new heights on Monday, with the Nasdaq Composite hitting a fresh all-time high. This development comes as investors remained unfazed by the escalating global trade tensions ahead of corporate earnings reports due later in the week.
The Nasdaq rose 0.27% to 20,640.33 points, while the S&P 500 gained 0.14% to 6,268.56 units. The Dow Jones Industrial Average advanced 0.20% to 44,459.65 points.
Most sectors of the S&P advanced, with communication services leading the way. Meanwhile, the energy sector experienced the largest decline.
Trade Tensions Intensify
President Donald Trump announced on Monday that the U.S. would impose severe tariffs, approximately 100%, on Russia if no agreement is reached within 50 days, according to The Wall Street Journal.
Trump had previously disclosed his plans for 30% tariffs on the European Union and Mexico, set to take effect from August 1st, in social media posts over the weekend.
European Union’s Delayed Response
In response to the U.S. threats, European Commission President Ursula von der Leyen stated on Sunday that the European Union would postpone its plan to impose tariffs on U.S. exports worth €21 billion (approximately $24.5 billion) annually until early August. The aim is to reach an agreement with the Trump administration, as reported by Financial Times.
Impact on Other Markets
Mexico’s Market Drops
Mexican stock markets began the week on a negative note, continuing the downward trend from the previous week as Mexico faced renewed threats of U.S. tariffs.
The Mexican Stock Exchange’s main index, the S&P/BMV IPC, fell 0.41% to 56,362.67 points, while the FTSE-BIVA, the Mexican Institutional Securities Index, dropped 0.36% to 1,135.43 points.
The stock indices marked their lowest levels in three weeks, as investors factored in President Donald Trump’s warning of 30% tariffs on Mexico, as conveyed in a letter to his Mexican counterpart, Claudia Sheinbaum.
Market participants are also awaiting quarterly reports, as major issuers in both Mexico and the U.S. are set to release their results this week.
- In Mexico, companies such as Nemak (automotive parts), Walmart de Mexico and Centroamérica (retail), Arca Continental (Coca-Cola bottling), and Kimberly Clark de México (consumer goods) will disclose their earnings.
Key Questions and Answers
- What is the main topic of this article? The Nasdaq hits a new record high amid escalating global trade tensions.
- Who are the key players mentioned? The U.S. stock market, President Donald Trump, European Commission President Ursula von der Leyen, and Mexican stock market.
- What actions are these players taking? The U.S. is threatening tariffs on Russia and the EU/Mexico, while the EU delays its retaliatory tariffs on U.S. exports.
- How are other markets affected? Mexican stocks fell due to renewed U.S. tariff threats, and investors are awaiting quarterly reports from major issuers in both countries.
