US Markets Surge on Fed Rate Cut Hopes; Peso Slips
Wall Street Rebounds Amidst Shifting Monetary Policy Expectations
US stock markets experienced a robust recovery this Monday, with major indices climbing as investors increasingly anticipate a September interest rate cut by the Federal Reserve. This optimism follows a recent jobs report that signaled a potential slowdown in the American economy.
Dollar Weakens Globally, Mexican Peso Faces Pressure
While the U.S. dollar generally softened against major world currencies, the Mexican peso continued its downward trend against the dollar for a fourth consecutive session. The peso closed at 18.9069 units per dollar, marking a daily depreciation of 0.10 percent.
Trading saw the Mexican currency fluctuate between a high of 18.9560 and a low of 18.8290 units against the dollar, according to data from the Bank of Mexico.
Geopolitical Concerns Dent Emerging Currencies
Heightened risk aversion permeated global markets following former President **Donald Trump’s** announcement of increased import tariffs on India. Concerns over India’s oil purchases from Russia contributed to nervousness among emerging market currencies, pushing the peso closer to the 19-per-dollar mark.
S&P 500 and Nasdaq Hit New Milestones
The S&P 500 index registered a significant gain of 1.45 percent, closing at 6,329.94 points, thus ending a four-day losing streak. This rally has consolidated 2025 gains to 7.6 percent. The Nasdaq composite also achieved historic highs, advancing 1.95 percent to 21,53.58 points.
Investor Sentiment Shifts Following Employment Data
U.S. markets operated with renewed optimism, moving past last week’s negative sentiment. This sentiment had been influenced by an employment report indicating softer labor creation, prompting investors to recalibrate their expectations for the Federal Reserve’s monetary policy.
Market participants now assign a substantial 92 percent probability to a Fed rate cut on September 17, a sentiment amplified by the July employment figures.
Mexican Stock Exchange Faces Losses
Meanwhile, the Mexican Stock Exchange’s price and quotes index (IPC) declined by 0.44 percent, settling at 56,650.26 points. This brought the index’s year-to-date performance down to 14.4 percent.
Out of the 36 companies comprising the IPC, 26 experienced declines. Notable underperformers included Televisa, Walmex, and Cemex. Conversely, Grupo Mรฉxico, Becle, and Peรฑoles managed to finish the session with gains.
Oil Prices Fall Amid Production Concerns
Oil prices fell to their lowest point in a week on Monday. This downturn followed OPEC+’s decision to implement a significant production increase for September, exacerbating worries about an oversupplied market. U.S. data also pointed to moderate fuel demand.
Brent crude futures dropped 1.42 percent to $68.68 per barrel, and U.S. West Texas Intermediate (WTI) crude decreased by one percent, closing at $66.29 per barrel.
The continued volatility in oil prices reflects global economic sentiment. For example, the International Energy Agency recently projected that global oil demand growth in 2025 could be slower than previously anticipated due to increased energy efficiency measures and the wider adoption of electric vehicles (Reuters, June 2025).
