Market Overview and Impact of U.S.-Iran Tensions
Wall Street futures dipped on Sunday night following the U.S. attack on Iran over the weekend. The Dow Jones futures fell by 0.40% to 22,345 points, while the S&P 500 and Nasdaq also experienced declines of 0.40% and 0.52%, respectively, at 8:00 PM CDMX time.
Bitcoin also took a hit, decreasing by 1.51% to $101,022.
Recent Market Performance
On Friday, both the S&P 500 and Nasdaq closed lower due to investor anxiety over the conflict between Iran and Israel before the U.S. airstrikes.
Iran’s Foreign Minister, Abbas Araqchi, expressed support for continuing talks with Germany, France, the UK, and the EU, stating that Iran would be open to further discussions soon after the Ginebra talks.
Israel’s attacks aimed to curtail Iran’s nuclear weapon capabilities.
On Friday, the S&P 500 dropped by 0.22% to 5,967.84 points; the Nasdaq Composite fell by 0.51% to 19,447.41 points, while the Dow Jones Industrial Average rose by 0.08% to 42,206.82 points.
Federal Reserve Comments and Interest Rates
Investors also analyzed comments from Federal Reserve officials after the central bank kept interest rates unchanged on Wednesday. Fed Chair Jerome Powell warned that inflation might accelerate during the summer.
Fed Governor Christopher Waller suggested that the inflation risk from tariffs was low and that the Fed should cut rates at its next meeting. Meanwhile, Richmond Fed President Thomas Barkin took a more moderate stance, stating that there was no urgency to lower the cost of credit.
Technology Stocks Under Pressure
Large-cap technology stocks, such as NVIDIA, were among the biggest decliners in both the S&P 500 and Nasdaq.
Mexican Stock Market Performance
More than 2% drop in a week
The Mexican stock market closed the Friday session with gains, but experienced a red week due to geopolitical tensions in the Middle East.
The Mexican Stock Exchange’s main index, the S&P/BMV IPC, rose by 0.35% to 56,264.69 points, while the FTSE-BIVA, the Institutional Securities Index, increased by 0.30% to 1,136.60 points.
Over the past five days, both indices fell more than 2%, marking the second consecutive negative period and the worst in the last 11 weeks.
Geopolitical Developments and Trade Concerns
Market sentiment was dominated by international updates. European leaders planned to meet with Iranian officials to mediate the conflict between Iran and Israel, but the U.S. carried out airstrikes over the weekend.
There have been no updates on the trade front, yet concerns persist as Mexico has not announced any progress in negotiations with the U.S. for new agreements.
Federal Reserve Outlook
Fed Governor Christopher Waller indicated that the central bank might find suitable conditions to reduce U.S. interest rates during the July meeting.
