Nasdaq, S&P 500, and Dow Jones all closed at record levels, with Nasdaq gaining 1.15% amid expectations of another Fed rate cut. Tech earnings season drives gains, with Intel returning to profitability and Alphabet hitting record prices on AI chip deals with Anthropic.
Wall Street hits triple record as Mexico's BMV stumbles for third week
Three weeks of losses in four—Mexico stumbles as Wall Street soars
Mark
Why did Wall Street surge so decisively on Friday when the broader economy still has so many uncertainties?
Mimi
The inflation number came in cooler than expected, which gave investors confidence that the Fed will cut rates again. Lower rates make borrowing cheaper and make future corporate earnings worth more in today's dollars. That's a powerful signal.
Mark
And the tech stocks—Intel and Alphabet—they're driving this, aren't they?
Mimi
They are. Intel proved it can be profitable again after eighteen months of losses, which matters because chips are foundational to everything, especially AI. Alphabet's deal with Anthropic shows the market believes there's real money in AI infrastructure. That's not speculation; that's companies betting capital.
Mark
So why is Mexico's market falling while the U.S. soars?
Mimi
That's the harder question. The Mexican market has lost ground three weeks out of four. Some of the country's biggest companies—Orbia, Peñoles, Inbursa—are down sharply. It could be capital flowing north to the U.S., or it could be specific concerns about Mexico's economy or policy. The year-to-date gain of 23 percent masks October's weakness.
Mark
What happens next week that matters?
Mimi
The Fed meets, and there's a 97 percent chance they cut rates. That's almost priced in. But Trump and Xi are meeting on the 30th, and nobody knows what they'll agree to on trade. That could be the real mover.
Mark
So the Mexican market is caught between two forces—U.S. strength pulling capital away, and uncertainty about what Trump might do?
Mimi
Exactly. Mexico is deeply integrated with the U.S. economy, so it should benefit from American strength. But if trade policy becomes unpredictable, or if the U.S. market keeps climbing while Mexico stalls, investors will keep choosing the safer bet.
Il Polso
- Nasdaq, S&P 500, and Dow Jones all closed at record levels Friday
- Intel returned to profitability with 4.1 billion dollars in Q3 earnings
- Mexican IPC fell 0.97 percent for the week, down 2.81 percent in October
- Fed rate cut probability stands at 97 percent for next meeting
- Trump-Xi meeting scheduled for October 30
Nasdaq, S&P 500, and Dow Jones all closed at record levels, with Nasdaq gaining 1.15% amid expectations of another Fed rate cut. Tech earnings season drives gains, with Intel returning to profitability and Alphabet hitting record prices on AI chip deals with Anthropic.
US stock indices reached historic highs Friday on inflation data and Fed rate-cut expectations, while Mexico's BMV declined 0.6% and fell in three of four weeks.
On Friday, the three major indices of Wall Street closed the day at historic highs. The Nasdaq rose 1.15 percent to 23,204 points. The S&P 500 advanced 0.79 percent, settling at 6,791. The Dow Jones climbed 1.01 percent to reach 47,207 units. The rally was fueled by two converging forces: inflation data released that morning came in below analyst expectations, strengthening the case for another interest rate cut from the Federal Reserve at its next meeting, and the ongoing earnings season, which has generally exceeded forecasts across the board.
Investors are watching several catalysts closely in the week ahead. The Fed's monetary policy meeting carries a 97 percent probability that the benchmark rate will land in the 3.75 to 4 percent range, according to CME Group's FedWatch tool. Beyond that, a scheduled meeting between Donald Trump and Xi Jinping on October 30 could move markets sharply, depending on what the two leaders agree to regarding trade and other bilateral matters.
Technology stocks have been the week's standout performers, buoyed by strong quarterly results and the ongoing race for artificial intelligence dominance. Intel reported a profit of 4.1 billion dollars in the third quarter, marking a return to profitability after eighteen months of losses, aided by investments from the U.S. government, Nvidia, and SoftBank. Alphabet, which will report its own numbers next week, closed the week at a record stock price following news of a deal with Anthropic that will give the AI company access to one million of Alphabet's custom-designed chips for accelerating AI and machine learning tasks.
European markets moved modestly higher. Spain's IBEX rose 0.44 percent to 15,861 points. Germany's DAX gained 0.13 percent to 24,239. London's FTSE 100 advanced 0.49 percent to 9,637. Oil prices dipped slightly, with West Texas Intermediate falling 0.63 percent to 61.4 dollars per barrel and Brent crude declining 0.27 percent to 65.81 dollars.
Mexico's stock market, by contrast, moved in the opposite direction. The Bolsa Mexicana de Valores fell 0.6 percent on Friday and closed the week down 0.97 percent, with its main index, the Índice de Precios y Cotizaciones (IPC), finishing at 61,145.49 points. This marks the third decline in the past four weeks. Several major Mexican companies posted steep weekly losses: Orbia dropped 8.71 percent, Industrias Peñoles fell 7.46 percent, Inbursa lost 7.23 percent, La Comer declined 5.24 percent, and Alsea fell 4.62 percent. Gabriela Siller, director of economic and financial analysis at Banco Base, noted the pattern of weakness. Enrique Covarrubias, director of economic analysis at Actinver, observed that while the IPC is up 23.48 percent for the year, October has been unkind, with the index down 2.81 percent so far this month. The FTSE-BIVA, the index of the Bolsa Institucional de Valores, fell 0.73 percent to 1,217 points.
The divergence between Wall Street's strength and Mexico's weakness underscores a broader pattern: while U.S. markets are riding a wave of optimism about rate cuts and AI-driven corporate growth, Mexican equities are struggling to find momentum. The coming week will test whether the Fed's next move and the Trump-Xi talks can shift sentiment across borders.
Citazioni salienti
The IPC closed the week with a loss of 0.97 percent, registering declines in three of the last four weeks— Gabriela Siller, director of economic and financial analysis, Banco Base
The IPC accumulated a weekly decline of 0.97 percent, with October performance at minus 2.81 percent despite year-to-date gains of 23.48 percent— Enrique Covarrubias, director of economic analysis, Actinver
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