Wall Street and Mexico's BMV stock markets closed sharply higher on Wednesday, reacting to Tuesday's post-market announcement of a two-week truce between the US and Iran—including negotiations and gradual reopening of the Strait of Hormuz—following President Trump's ultimatum. The Dow Jones surged 2.85%, while the BMV's IPC climbed 2.47%. The Mexican peso strengthened up to 1.9% against the dollar.
This rally followed Tuesday's mixed Wall Street close amid Trump's threats to Iran over the Strait of Hormuz, with the bilateral ceasefire confirmed after markets shut.
Wall Street's main indices posted strong gains: The Dow Jones Industrials rose 2.85% to 47,909 points, the S&P 500 advanced 2.51% to 6,782 units, and the Nasdaq progressed 2.80% to 22,634 points.
In Mexico, the BMV's IPC gained 2.47% to 70,221.76 units, snapping two days of losses, according to Gabriela Siller, director of Economic Analysis at Banco Base. Standouts included Volaris +10.11%, Peñoles +7.3%, and Grupo Aeroportuario del Sureste +5.36%. The FTSE-BIVA rose 2.38% to 1,401.08 points.
The Mexican peso appreciated 1.9% to 17.43 pesos per dollar (Banco de México), or 1.56% to 17.42 pesos; in bank windows, it traded at 17.89 pesos per Banamex. The dollar index (DXY) fell 0.74% to 99.12 points.
Oil prices plunged on expectations of increased Hormuz flow: West Texas Intermediate -14.64% and Brent -11.77%, both below $100 per barrel. "The ceasefire is clearly positive, but not a solution," Mark Hackett of Nationwide told Bloomberg. In Europe, the DAX jumped +5.06% and CAC 40 +4.49%.
