US Stocks Reach New Heights
The Dow Jones Industrial Average and the S&P 500 closed at record highs on Wednesday, following a broad rally during a shorter trading session due to a holiday.
- S&P 500: Up by 0.32% to 6,932.05 points
- Nasdaq Composite: Increased by 0.22% to 23,613.31 points
- Dow Jones Industrial Average: Rose by 0.60% to 48,731.16 points
Year-to-date, all major US stock market indices have returned over 10%. The Nasdaq leads with a gain of 22.28%, followed by the S&P 500 with a 17.86% increase and the Dow Jones with a 14.54% rise.
Recent stock gains have fueled hopes for a “Santa Claus rally,” an annual seasonal phenomenon where the S&P 500 posts gains in the last five trading days of the year and the first two of January, according to Stock Trader’s Almanac. This period began on Wednesday and will extend until January 5.
AI Stocks Rebound
The rally has been supported by a rebound in AI-related companies following last week’s mass sell-off due to concerns about inflated valuations and high capital expenditures impacting profits.
Financial Sector Boosts Gains
Bank stocks also contributed to the gains, with the financial sector being one of the most profitable among the S&P 500’s 11 sectors.
“The end-of-year momentum suggests a favorable scenario for a positive Santa Claus rally, which historically is a bullish signal for January and 2026,” said Adam Turnquist, LPL’s chief technical strategist.
Mexican Markets Join the Uptrend
Mexican stock exchanges added five consecutive days of gains, despite a slight profit-taking in the early hours of trading.
- S&P/BMV IPC: Rose marginally to reach a new historical high of 65,616.43 points
- FTSE BIVA: Increased by 0.15% to 1,297.88 units
Both indices renewed their previous historical highs set in the prior session. The S&P/BMV IPC recorded its fourth record high of December, while the FTSE BIVA reached a new height for the second time in the month.
Year-to-date, both bourses outperform their US counterparts. The S&P/BMV IPC is up 32.52%, and the FTSE BIVA has gained 29.17% in the same period.
Standout Mexican Companies
Key companies driving the market’s performance this year include:
- Industrias Peñoles: The leading global silver refining company has seen over a 250% return.
- Grupo México: The conglomerate with interests in mining, transportation, and infrastructure has risen by 75%.
- Cementos Mexicanos: The global construction materials producer has gained nearly 82%.
These three companies belong to the materials sector, which is the second-highest weighted within the IPC and one of the best-performing sectors in 2025, with an accumulated return close to 40%.
