Cautious Markets: Wall Street Opens Lower After Historic Rally; Mexican Peso Holds Firm
Global financial markets remained cautious this Monday, May 5, with Wall Street starting the week lower after a historic run of gains, as investors weighed news on international trade, Federal Reserve policy, and oil prices. In contrast, the Mexican peso remained strong against the dollar.
After posting its ninth consecutive session of gains on Friday—the longest streak for the S&P 500 since 2004—Wall Street opened Monday in the red. Futures for the major indices (S&P 500, Nasdaq, Dow Jones) pointed to a lower opening, reflecting profit-taking and the assimilation of various economic and political factors.
Trade Tensions: Although China expressed a willingness to engage in dialogue if the US reverses tariffs, the Trump administration announced new tariffs, this time 100% on foreign films, creating uncertainty. Companies like Netflix and Disney saw their stocks fall in premarket trading.
Monetary Policy: Investors are keeping an eye on the Federal Reserve's next meeting this week, awaiting signals about the future of interest rates. Although the market is pricing in a possible rate cut in July, restrictive comments from some officials and data such as the ISM Services Index (which exceeded expectations but showed pressure on prices) are keeping expectations high.
Oil: The decision by OPEC+, led by Saudi Arabia, to increase oil production for the second consecutive month (an additional 411,000 barrels per day in June) caused crude oil prices to fall by around 4%, amid fears of oversupply.
Corporate News: The surprise announcement of Warren Buffett's retirement from Berkshire Hathaway in 2026 and corporate results (such as Santander's sale of its US consumer unit) are also influencing sentiment.
European stock markets closed the day with mixed results and moderate movements, also reflecting global caution. The EuroStoxx 50 was little changed (up 0.03%), while the German DAX rose (up 1.12%) and the French CAC fell (down 0.55%).
European Markets Closing (May 5, 2025)
| Index | Closing | Variation (%) | Fountain |
|---|---|---|---|
| Euro Stoxx 50 | 5,283.45 | +0.03% | |
| DAX (Germany) | 23,344.54 | +1.12% | |
| CAC 40 (France) | 7,727.93 | -0.55% | |
| FTSE 100 (UK) | 8,596.35 | +1.17% | |
| IBEX 35 (Spain) | 13,518.00 | +0.53% |
In Mexico, despite the bank holiday due to the Battle of Puebla, the Mexican peso continued to show strength. The exchange rate reported by Banxico at the start of the day was $19.52 per dollar, and at border exchange counters and bureaus, it remained stable below $19.60-$20.11 per dollar, consolidating the "super peso" narrative.
USD/MXN Exchange Rate (May 5, 2025, Afternoon)
| Reference | Purchase (Average) | Sales (Average) | Fountain |
|---|---|---|---|
| Banxico (Start of the day) | – | $19.52 | |
| Banks (Average) | $18.54 | $20.08 | |
| Exchange Houses (Border) | $18.50 | $20.50 | |
| Google Finance (Mid-Morning) | – | $19.58 |
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