Wall Street closed this Tuesday with widespread gains and records in the Dow Jones Industrial Average and the S&P 500 despite Donald Trump’s recent threats to impose trade tariffs on China, Mexico and Canada once he is president.
At the end of the session, the Dow rose 0.28% to 44,860 points, the S&P 500 advanced 0.57% to 6,021 units, and the Nasdaq advanced 0.63% to 19,174 points.
Trump threatened on Monday to impose a 25% tariff on products from Mexico and Canada, and an additional 10% tariff on those from China if those countries do not interrupt the flow of drugs and irregular immigration to the United States of which he accuses them.
“Investors are in disbelief that the levies will end up being implemented (and in addition) the headlines are offset by favorable year-end seasonality and decent earnings,” analyst Adam Crisafulli of Vital Knowledge told CNBC.
Read: Trump warns of 25% tariff on products from Mexico and Canada on his first day
However, in reaction to the tariff promises, the US dollar appreciated against the Canadian dollar and the Mexican peso, and the shares of several vehicle manufacturers that may be harmed by this policy fell, such as Ford, which fell 9%.
On the other hand, this Tuesday the minutes of the most recent monetary policy meeting of the Federal Reserve (Fed) were published, which indicated that the US central bank plans to continue lowering its interest rate “gradually” if inflation continues. on the way to the 2% target.
BMV closes at a minimum not seen in more than a year
The Mexican Stock Exchange (BMV) closed this Tuesday’s session at a minimum level not seen since the end of October last year, amid Donald Trump’s new tariff threat against Mexico.
The benchmark S&P/BMV IPC stock index fell 0.99% to 49,712.90 points, the lowest level since October 31, 2023, according to data from Investing.com
The shares of Cemex, one of the largest cement companies in the world, preliminarily sank 4.35% to 11.22 pesos, while those of the Banorte financial group fell 3.70%, to 133.50 pesos.
Read: Companies reinforce currency hedges after Trump’s tariff threat
The shares of the mining company Industrias Peñoles fell 5.17% to 278.71 pesos.
In the debt market, the 10-year bond yield rose to 10.04%, while the 20-year rate rose to 10.40%.
With information from EFE, Reuters and Francisco Rivera
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