Key Players and Their Impact
On Friday, major U.S. stock market indices closed lower due to the escalating conflict between Israel and Iran, which shook up the Middle East and drove oil prices higher.
- Nasdaq: Fell 1.3% to 19,406.83 points
- S&P 500: Dropped 1.1% to 5,976.97 units
- Dow Jones Industrial Average: Declined 1.8% to 42,197.79 points
The financial and technology sectors led the losses, while energy was the only sector to see gains.
Israel’s Military Action Against Iran
Early Friday morning local time, Israel attacked Iran, targeting military infrastructure and nuclear facilities, according to news reports.
Potential Impact on Oil Prices
ING Bank suggests that the conflict could push oil prices above $80 per barrel. Rystad Energy notes, “If Iran’s retaliation is limited and focuses only on Israeli military assets, as seen in previous episodes, price increases could remain contained and temporary.” However, they warn, “If Iran escalates its actions by disrupting oil flows through the Strait of Hormuz, attacking regional energy infrastructure, or targeting U.S. military assets, prices could rise much more sharply.”
Corporate News and Its Effects
Visa’s stock fell 4.9%, and Mastercard’s dropped 4.6% after Walmart, Amazon.com, Expedia, and several major airlines considered launching their own stablecoins.
Oracle’s stock rose 7.7%, the largest gain among large U.S. companies in the S&P 500, following Mizuho and Argus raising their price targets, while William O’Neil initiated coverage with a buy recommendation.
Weekly Performance
Mexican stock markets maintained a negative tone throughout Friday’s session, mirroring global uncertainty following recent military attacks in the Middle East.
- S&P/BMV IPC: Dropped 0.68% to 57,438.57 points
- FTSE-BIVA: Fell 0.61% to 1,159.61 points
The indices fell for the third time in five days and recorded a weekly decline exceeding 1%, making it the steepest in the past six weeks. Additionally, Mexican equity baskets ended with their lowest score in the past month.
Investors considered Mexico’s government signing an agreement to reduce tortilla prices by 5% for the general public in the country.
The most significant declines were seen in Quálitas (automotive insurance), Cemex (cement and concrete production), and Gentera (lending).
