Key Factors Driving the Market’s Growth
Wall Street concluded October with widespread gains across major stock indices, marking six consecutive months of increases.
The positive results can be attributed to the interest rate cut by the Federal Reserve (Fed), the trade agreement between the United States and China, as well as robust financial reports that propelled new historical highs during October.
Monthly Performance
- On Friday, the Dow Jones Industrial Average rose 0.09% to 27,562.87 points.
- The S&P 500 advanced 0.26% to 3,840.20 units.
- The Nasdaq Composite gained 0.61% to 13,724.96 points.
On a weekly basis, the Dow Jones increased by 0.75%, the S&P 500 improved by 0.71%, and the Nasdaq Composite gained 2.24%. All three indices secured their third consecutive week of gains.
In October, the Nasdaq recorded the highest increase (4.70%), followed by the Dow (2.51%) and the S&P 500 (2.27%). All three indices notched their sixth consecutive month of advances.
Reasons Behind the Market’s Momentum
According to analysts from Actinver, “In October, markets closed in positive territory, driven by the Fed’s reference rate reduction, expectations of a potential US-China trade agreement, and solid corporate results from S&P 500 companies that largely exceeded market estimates.”
They further noted, “Companies linked to artificial intelligence trends demonstrated strength, backed by technological advances and strategic agreements announced throughout the month.”
Gabriela Siller, director of Analysis at Banco Base, stated, “The capital market closed the month with gains across the globe due to optimism over the Fed’s rate cut, leading most indices to reach new historical highs during the month.”
Mixed Performance in Mexican Markets
Stock exchanges operating in the Mexican market experienced a decline in October, ending a two-month streak of increases.
- The S&P/BMV IPC, Mexico’s stock exchange index, fell 0.73% to trade at 62,889.86 points.
- The FTSE-BIVA, the most representative index of the Bolsa Institucional de Valores (BIVA), dropped 0.74% to reach 1,250.95 units on Friday.
In October, the S&P/BMV IPC declined 0.23%, and the FTSE-BIVA fell 0.63%.
Gerardo Copca, an analyst at CopKapital, commented, “The market remains in adjustment mode and redefining expectations. In Mexico, the IPyC trend remains positive, though recent peaks suggest a natural pause, especially with the GDP decline in Q3 2025.”
Key Questions and Answers
- Q: What drove Wall Street’s continuous growth? A: Key factors include the Fed’s interest rate cut, optimism around a US-China trade agreement, and strong corporate earnings reports.
- Q: How did the Mexican stock market perform in October? A: The S&P/BMV IPC fell 0.73%, and the FTSE-BIVA dropped 0.74%.
- Q: Which sectors showed strength in October? A: Companies related to artificial intelligence trends demonstrated resilience, supported by technological advancements and strategic partnerships.
