Overview of Major Indices
On Wednesday, the Dow Jones Industrial Average closed slightly lower at 47,632.65 points, the S&P 500 remained unchanged at 6,890.73 units, and the Nasdaq Composite rose by 0.55% to 23,958.47 points.
Nasdaq Hits New High
The Nasdaq Composite reached a new all-time closing high, driven by Nvidia’s 3% increase. The AI chip manufacturer’s stock value soared to $5 billion, making it the most valuable publicly traded company.
Fed’s Interest Rate Cut and Jerome Powell’s Statement
The Federal Reserve (Fed) reduced interest rates by a quarter percentage point, aligning with market expectations. However, Fed Chair Jerome Powell emphasized that another rate cut by the end of the year is not guaranteed.
Mixed Reactions to Quarterly Reports
After the stock market closed, quarterly reports from Meta Platforms, Microsoft, and Alphabet were released. Investor responses were mixed.
Mexican Markets Reach New Heights
In Mexico, stock markets experienced three consecutive days of gains and reached new historical highs as investors processed recent financial reports from local companies.
- S&P/BMV IPC: The Bolsa Mexicana de Valores index rose 0.89% to 63,352.85 points.
- FTSE BIVA: The Bolsa Institucional de Valores index gained 0.83% to 1,260.84 points.
Leading the gains were Orbia conglomerate stocks, which increased by 7.37%, followed by Grupo México mining stocks, which rose by 6.19%.
Volaris Stock Decline
Outside the index, Volaris airline stocks fell 4.69% after the U.S. revoked approval for 13 routes of Mexican companies to its territory.
Peso Weakens Against the Dollar
The Mexican peso weakened against the U.S. dollar, falling to 18.4706 units—a 0.21% decrease from the previous day—following the Fed’s interest rate adjustment to a 3.75-4.00% range.
Key Questions and Answers
- What were the major indices’ performances? The Dow Jones closed slightly lower, S&P 500 remained unchanged, and Nasdaq Composite rose.
- Why did the Nasdaq hit a new high? The increase was primarily due to Nvidia’s 3% rise, pushing its market value to $5 billion.
- What did Jerome Powell say about future rate cuts? Powell indicated that another rate cut by year-end is not assured.
- How did investors react to quarterly reports? Investor responses were mixed following the release of quarterly reports from Meta Platforms, Microsoft, and Alphabet.
- What drove Mexican markets to new highs? Investors processed recent financial reports from local companies, leading to three consecutive days of gains.
- Which stocks led the gains in Mexico? Orbia conglomerate stocks increased by 7.37%, and Grupo México mining stocks rose by 6.19%.
- Why did Volaris stocks decline? The fall was due to the U.S. revoking approval for 13 routes of Mexican companies to its territory.
- How did the peso perform against the dollar? The peso weakened to 18.4706 units against the dollar following the Fed’s interest rate adjustment.
