Stock Market Performance and Key Influences
Wall Street closed higher on Monday as oil prices fell following the Israel-Iran conflict, which did not affect crude production or exports and thus kept energy prices stable.
- S&P 500 increased by 0.94% to 6,033.11
- Nasdaq Composite gained 1.52% to 19,701.20
- Dow Jones Industrial Average rose 0.75% to 42,515.10
Crude oil prices dropped more than 1% due to expectations of a truce between Israel and Iran, after Tehran urged US President Donald Trump to enforce a ceasefire in the air war.
Israel’s Prime Minister stated that his country was on the “path to victory”.
Iran has reportedly asked Qatar, Saudi Arabia, and Oman to pressure Trump to use his influence with Israel to secure an immediate ceasefire, in exchange for Iran’s flexibility in nuclear negotiations, according to sources cited by Reuters.
Impact on Investors and the Economy
George Young, portfolio manager at Villere & Co., explained, “The wild card is really what happens with oil prices… any small geopolitical movement can impact that sector and this economy as well.”
“When consumers become concerned about inflation and cut back on spending, it will directly affect corporate profits, regardless of which sector you’ve invested in,” Young added.
Anticipation of the Fed’s Monetary Policy Decision
Investors are also awaiting the Federal Reserve’s monetary policy decision on Wednesday, expecting officials to keep interest rates unchanged.
Mexican Stock Market Performance
BMV and Biva Fall
The Mexican stock market shed its morning rebound and closed lower on Monday, following the release of some economic data and anticipation of the international trade and geopolitical landscape.
- S&P/BMV IPC fell 0.68% to 57,046.85 points
- FTSE-BIVA, the most representative index of the Mexican Stock Exchange (Biva), dropped 0.69% to 1,151.58 points
The market has fallen for the third time in four sessions, ending with its lowest score since May 12 of the current year.
Mexico’s Economic Developments and International Relations
Claudia Sheinbaum, Mexico’s president, traveled to Canada to attend the G7 summit as a guest, where she will have her first in-person meeting with US President Donald Trump. Sheinbaum might take initial steps to secure a preferential trade agreement for Mexico regarding US tariffs on steel and aluminum, which are currently set at 50%.
Economic data revealed that private consumption remained flat in May, according to the National Institute of Statistics and Geography’s advanced indicator. The National Association of Self-Service and Department Stores reported a 10.3% growth in same-store sales for its members in May, while total sales increased by 13%.
