Economy Country May 05, 2025

Uncertainty Hits Stock Markets in Mexico and the U.S.

On May 5, 2025, stock markets in Mexico and the United States experienced moderate declines, attributed to financial uncertainty surrounding Trump's economic policies and the Fed's upcoming monetary announcement.


Uncertainty Hits Stock Markets in Mexico and the U.S.

The uncertainty marked the stock market day on Monday, May 5, 2025, in Mexico and the United States, with moderate drops around 0.3%. Financial analysts attributed these red numbers to a climate of financial uncertainty caused by the protectionist economic and trade policy of U.S. President Donald Trump, as well as expectations surrounding the upcoming monetary policy announcement from the Federal Reserve (Fed) next Wednesday, where it could be decided whether to cut the current interest rate of 4.5%, a demand from the president.

In the United States, the losses were also interpreted as a correction after several sessions of gains, including a streak of nine consecutive gains in the S&P 500, something that hadn't happened since November 2004.

In the Mexican Stock Exchange, moderate drops of up to 0.2% were recorded by midday, amid persistent volatility and financial uncertainty in the U.S. stock markets. The Price and Quotation Index (IPC) fell by 0.14%, equivalent to 78.08 points less, standing at 55,733.91 units. Meanwhile, the Institutional Stock Exchange (BIVA) decreased by 0.24%, with a drop of 2.67 points and a main indicator around 1,129.28 units.

On Wall Street, stock markets showed mixed results, with the Dow Jones slightly advancing by 0.08%, the Nasdaq falling by 0.33%, and the S&P 500 decreasing by 0.32%. All had operated with losses during the morning, due to the uncertainty generated by Trump's policies and the anticipation of the Fed's upcoming announcement.