Key Players and Their Influence
On Monday, major indices on Wall Street fell as investors gear up for crucial economic data that could shape interest rate trajectories and assess reports on potential candidates to lead the Federal Reserve (Fed).
President Donald Trump narrowed his search for the Fed chair position to ex-Fed governor Kevin Warsh or Kevin Hassett, director of the National Economic Council. This has fueled expectations of interest rate cuts next year, despite inflation remaining above the 2% target and persistent price pressures in other developed markets supporting calls for a rate hike.
Market Performance
The S&P 500 dropped 0.16% to 28,166.52 points; the Nasdaq Composite fell 0.59% to 13,057.41 units; and the Dow Jones Industrial Average decreased by 0.09% to 24,841.56 points.
Key economic reports, including non-farm payrolls for October and November, will be released on Tuesday. October’s data was delayed due to the government shutdown earlier this quarter.
Investors will also monitor business activity reports, weekly unemployment benefit applications, and inflation data published this week for clues on economic resilience and upcoming Fed moves.
Central bank announcements from Europe, the UK, and Japan will add to the busy schedule.
Mexican Markets’ Performance
The Mexican stock market experienced losses as well. The S&P/BMV IPC index from the Mexican Stock Exchange (BMV) declined 0.6% to 64,326.16 units, and the FTSE-BIVA from the Mexican Stock Exchange (BIVA) dropped 0.58% to 1,275.18 points.
Both indices recorded their worst close in over two weeks. Investors factored in downward revisions to economic growth forecasts for both 2025 and 2026, according to a Banco de México survey. Additionally, their inflation outlook for year-end worsened.
Key Questions and Answers
- What caused the drop in Wall Street indices? Investors are preparing for upcoming economic data that could influence interest rates and evaluating potential Fed chair candidates.
- Who are the leading candidates for the Fed chair? President Trump has narrowed his search to Kevin Warsh and Kevin Hassett.
- What economic reports are crucial this week? Non-farm payrolls for October and November, business activity reports, weekly unemployment benefit applications, and inflation data.
- How have Mexican markets performed? The S&P/BMV IPC and FTSE-BIVA indices both experienced declines, with the former dropping 0.6% and the latter falling 0.58%. This is their worst close in over two weeks.
- What factors influenced the downward revisions to Mexico’s growth forecasts? Analysts adjusted their economic growth projections for 2025 and 2026 downward, as reported by Banco de México. Furthermore, their year-end inflation outlook worsened.
