Overview of the US Stock Market Performance
The US stock market concluded Friday’s trading session with gains, as investors absorbed the implications of trade threats and consumer inflation data in the United States.
- Dow Jones: Increased by 0.65% to 24,627.29 points
- S&P 500: Rose by 0.59% to 6,643.70 points
- Nasdaq Composite: Advanced by 0.44% to 22,484.07 points
These three major indices ended the day in positive territory after three consecutive sessions of declines.
On a weekly basis, the Dow Jones fell by 0.15%, while the S&P 500 dropped by 0.31%. The Nasdaq experienced a 0.65% decline, halting two consecutive weeks of gains.
Inflation Data and Consumer Confidence
Investors also processed the Personal Consumption Expenditure (PCE) inflation data, preferred by the Federal Reserve, which increased in August to 2.7% annually – the highest level since February.
The University of Michigan’s consumer sentiment reading for September was nearly in line with expectations, slightly below the forecasted level.
Mexican Stock Market Performance
The Mexican stock market concluded the day with gains, nearing historical highs, as investors digested US economic data and adjusted to Banco de México’s recent interest rate cut.
- S&P/BMV IPC: Rose by 0.58% to 62,307.07 points
- FTSE-BIVA: Gained 0.62% to 1,244.68 points
Both indices reached historical highs during intraday trading. Over the past five days, the BMV index advanced by 1.81%, and BIVA increased by 1.39%, marking its third consecutive week of gains out of the last four.
Trade Threats and Monetary Policy
Investors absorbed US President Donald Trump’s threat of imposing a 100% tariff on brand-name drug imports. The rate would apply to any pharmaceutical company not building a manufacturing plant in the United States, according to a social media post.
Banco de México’s decision to lower the reference interest rate by 25 basis points to 7.50% (a divided 4-1 vote, with sub-governor Jonathan Heath voting to maintain the rate unchanged) was also factored into investors’ considerations.
Marcela Pereira, Chief Economist at Principal Asset Management Latin America, stated in a report: “We anticipate that the strength of the exchange rate, weak economic activity, and the expected relaxation by the Fed will be key factors guiding Banxico’s monetary policy decisions.”
Key Questions and Answers
- Q: What were the major US stock indices’ performances? A: The Dow Jones rose 0.65%, the S&P 500 increased by 0.59%, and the Nasdaq Composite gained 0.44%.
- Q: How did the US stock market perform on a weekly basis? A: The Dow Jones fell 0.15%, the S&P 500 dropped by 0.31%, and the Nasdaq experienced a 0.65% decline, ending two weeks of gains.
- Q: What was the PCE inflation data and consumer sentiment reading? A: The PCE inflation data increased to 2.7% annually in August, the highest level since February. The University of Michigan’s consumer sentiment reading for September was nearly in line with expectations, slightly below the forecasted level.
- Q: How did the Mexican stock market perform? A: The S&P/BMV IPC rose by 0.58%, and the FTSE-BIVA gained 0.62%. Both indices reached historical highs during intraday trading.
- Q: What were the trade threats and monetary policy considerations? A: US President Donald Trump threatened a 100% tariff on brand-name drug imports. Banco de México lowered the reference interest rate by 25 basis points to 7.50%.
