US equities left slates in red, after GDP data in the United States questioned the possibility of achieving a softlandingreflecting a greater than expected slowdown, as it reached an annualized quarterly rate of 1.6 percent, which represents a slowdown from the 3.4 percent recorded during the previous quarter.
After this, the Dow Jones It fell 0.98 percent, to 38 thousand 85.80 integers; the second biggest setback was for the Nasdaq with a decrease of 0.64 percent, to stand at 15,611.76 units and the S&P 500 recorded a drop of 0.46 percent, reaching a level of 5 thousand 48.42 points.
Furthermore, after the closing of operations, Alphabet shares soared 13 percentreporting sales, excluding payments to partners, of $67.6 billion in the first three months of the year, while earnings per share were $1.89, which exceeded Wall Street estimates of $1.53.
Also in after hours Microsoft shares advance 3.80 percentas greater corporate demand for artificial intelligence and cloud offerings, grew its revenue this quarter by 17 percent, which totaled $61.9 billion.
The tech giants’ late rally came after the market was rocked by data that showed exactly what investors didn’t want to hear: a sharp economic slowdown in the United States and persistent inflation. Gross domestic product (GDP) rose at an annualized rate of 1.6 percent, below all forecasts. A closely watched measure of core inflation rose at a faster-than-expected 3.7 percent.
Investors have shown that they are excited about the AI perspectives but they want tech companies to continue focusing on revenue and profits in the meantime.
Like other large technology companies, Alphabet has been investing money in AI developmenta strategy that has helped drive demand for its cloud services. Google It ranks a distant third in the cloud computing market, behind Amazon.com and Microsoft, but the company’s prowess in artificial intelligence could help it close the gap.
Meanwhile, Microsoft has been incorporating artificial intelligence technology from its partner OpenAI into its entire product line. The bet is starting to pay off, as some customers add AI tools that summarize documents and generate new content to their Office productivity software or sign up for Azure cloud subscriptions with OpenAI products.
Before the close of regular operations this Thursday, the S&P 500 trimmed most of its lossesdriven by the gprofits of two heavyweights: Nvidia and tesla.
From the ‘other side of the world’, in the Asian session on Nikkei 225 in Japan It contracted 2.16 percent, reaching 37,628.48 integers, before the central bank of said economy issues its monetary policy decision, for which the authorities are expected to keep their interest rates unchanged.
Meanwhile, oil prices rebounded despite concerns that demand for crude in the United States could decline. The WTI rose 0.92 percent, at 83.57 dollars per barrel and the Brent benchmark advanced 1.41 percent, trading at 89.26 greenbacks per unit.
How did the Mexican Stock Market do this April 25?
Local stock markets benefited from a positive reaction from investors towards companies that are listed in the Mexican market and that have recently presented their quarterly results. Such is the case of Genomma Lab, OMA and Alfa, which were the winners of the session by increasing 8.29, 5.73 and 5.44 percent, respectively.
These gains supported the main index of the Mexican Stock Exchange (BMV)S&P/BMV IPC, 1.1 percent, at 57 thousand 85.84 integers, while the Institutional Stock Exchange It ended with an increase equivalent to 1.02 percent, at 1,383.66 units.
With the increase of 1.1 percent, the BMV added gains in five of the last six sessions and was 0.55 percent below the close of 2023. At the end of last year, the BMV closed at 57,386.25 units.
The director of Economic Analysis at financial group Actinver, Enrique Covarrubias, indicated that “the CPI broke away from the negative trend of its US peers and rose 1.1 percent and with this movement the index reduced the loss so far in 2024 to -0.6 percent.”
The analyst pointed out that The Mexican market will be attentive to the quarterly reports of several companiesgiven that tomorrow is the last day for its disclosure.
The IPC closed the session at 57,085.84 units, with a gain of 621.85 points and a negative variation of 1.1 percent compared to the previous day.
The volume traded in the market reached 326.5 million securities for an amount of 16,333 million pesos (about 949 million dollars). Of the 510 firms that traded on the day, 312 ended with their prices rising, 178 had losses and 20 closed unchanged.
With information from Bloomberg and EFE.
