Wall Street closes in the green driven by banking, as AI nervousness dissipates

Tuesday’s session left a mixed outlook in the global markets. Wall Street experienced a positive close led by outstanding performance from financial institutions, while Mexico’s main stock index showed weakness. The rebound on Wall Street suggests that traders overcame initial concerns about the outlook companies have expressed regarding artificial intelligence.

Performance of Major Wall Street Indices

The three major U.S. benchmarks started their short week with gains. The Nasdaq rose 0.14%, reaching 22,578.39 points. The S&P 500 increased 0.10% to 6,843.22, while the Dow Jones finished with a 0.07% gain, closing at 49,533.19 points.

Although the percentage increases were modest, they reflect Wall Street’s ability to stay near record highs. As Chris Larkin from E*Trade at Morgan Stanley told Bloomberg, “Although the market is close to its highs, some investors don’t see it that way due to aggressive sell-offs that have slowed advances almost from the start of each session.”

Banking Gains, Tech Retreats

Among the top winners were leading financial institutions. Citigroup rose 2.6%, JPMorgan gained 1.5%, Bank of America increased 0.3%, and Wells Fargo went up 0.5%. This performance indicates sector rotation favoring defensive and cyclical stocks linked to interest rates.

In contrast, tech stocks faced pressure. ServiceNow fell 1%, Autodesk declined 2.5%, Salesforce dropped 2.56%, and Oracle experienced the largest decline at 3.8%. All these declines are in the software industry and suggest ongoing concerns about the profitability of AI-related projects.

Mexican Market Under Pressure

In Mexico, the S&P/BMV IPC of the Mexican Stock Exchange (BMV) ended down 0.28%, closing at 71,155.69 points. With this decline, the Mexican index has recorded three negative closes in the last four sessions, indicating short-term weakness.

Losses were concentrated in large-cap stocks: Industrias Peñoles fell 4.06%, Grupo México declined 3.95%, Televisa dropped 3.31%, Kimberly-Clark contracted 2.09%, and Becle lost 1.63%. The FTSE-BIVA of the Institutional Stock Exchange (BIVA) also showed weakness, down 0.20%, closing at 1,410.46 points.

Mexican Peso Strengthens Against the Dollar

In the currency market, the Mexican peso showed strength, appreciating 0.17% against the U.S. dollar. According to Banco de México (Banxico), the exchange rate closed at 17.13 pesos per dollar, improving from 17.16 in the previous session.

European Markets and Oil Prices

Across the Atlantic, European markets closed the day with gains. Germany’s DAX rose 0.80%, reaching 24,998.40 points, while London’s FTSE 100 increased 0.79% to 10,556.17 points. This strength contrasts with the weakness seen in Latin America.

Oil prices faced downward pressure. West Texas Intermediate fell 0.89%, ending at $62.33 per barrel, while Brent declined 1.85% to $67.38 per barrel. The reduction in risk premium was supported by statements from Iran indicating that nuclear talks with the U.S. have been constructive.