Introduction
On Monday, the S&P 500 and Nasdaq closed higher, with artificial intelligence (AI) related operations driving most of the gains. This upward trend occurred despite increasing confusion over the short-term monetary policy of the Federal Reserve due to a lack of recent U.S. economic data.
Market Performance
- S&P 500: Gained 0.17% to close at 6,852.04 points.
- Nasdaq Composite: Increased by 0.46% to reach 23,834.72 points.
- Dow Jones Industrial Average: Decreased by 0.48% to end at 47,336.68 points.
Technology companies and related firms helped propel the Nasdaq, while UnitedHealth Group and Merck kept the Dow in negative territory.
Fed Policy Uncertainty
On Monday, conflicting opinions from Federal Reserve officials regarding the economic situation and associated risks emerged, intensifying as the partial U.S. government shutdown prevented the release of official economic data.
- Market participants estimate approximately a 70% chance of a 25-basis-point rate cut in December, down from 94% the previous week.
Although official economic data remains scarce due to the partial government shutdown, the Institute for Supply Management and S&P Global published their purchasing managers’ indices, indicating that U.S. manufacturers continue to grapple with uncertainty stemming from Trump’s tariff policies.
Amazon-OpenAI Agreement
The $380 million agreement between Amazon and OpenAI spurred stock gains, closing with a 4% increase.
“We continue to view this market as being driven by the technology revolution, which is undoubtedly in full swing thanks to AI,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Mexican Markets
BMV and BIVA Down
Mexico’s leading indices maintained their losses at Monday’s closing, as investors absorbed local data.
- S&P/BMV IPC: Dropped 0.98% to finish at 62,153.30 points.
- FTSE BIVA: Declined 0.91% to close at 1,238.79 points.
The indices have experienced three consecutive days of losses but remain less than 2% away from last week’s highs. Among the largest decliners among major issuers and exchanges were Kimberly Clark de Mexico, Peñoles mining company, and Regional.
