Mexican Peso Pulls Back After 17-Month High

Posted on December 17, 2025 by Ignacio Teson

The peso slipped as the U.S. dollar rebounded, amid uncertainty over the future path of the Fed’s key rate and one day ahead of Mexico’s local monetary policy decision.

The Mexican peso weakened against the dollar in Wednesday’s session. The local currency pulled back as the greenback regained strength, with markets weighing uncertainty around the Federal Reserve’s interest rate outlook and ahead of Thursday’s domestic policy announcement.

Mexican Peso – U.S. Dollar Outlook

The exchange rate closed at 18.0154 pesos per dollar. Compared with Tuesday’s close of 17.9509, according to official data from the Bank of Mexico (Banxico), the move represented a loss of 6.45 cents, or 0.26%.

[[USD/MXN-graph]]

The dollar traded within a range between a high of 18.0499 and a low of 17.9572 pesos. The U.S. Dollar Index (DXY), which measures the dollar against a basket of six major currencies, rose 0.17% to 98.39 points.

The peso retreated after its recent positive streak and a weaker dollar pushed it on Tuesday to its strongest level since July 2024 (a 17-month high). Wednesday’s decline came alongside a renewed strengthening of the dollar, as markets focused on signals from the Fed.

Earlier in the day, Fed Governor Christopher Waller said there was still room for interest rate cuts due to concerns about a softening labor market, following three consecutive adjustments. While a divided Fed cut rates last week, it also signaled that further reductions are unlikely in the near term. Markets are now awaiting remarks from New York Fed President John Williams and Atlanta Fed President Raphael Bostic.

Data of Mexico

On the local front, investors are looking ahead to Banxico’s final monetary policy decision of the year on Thursday. Analysts expect the central bank to deliver a twelfth consecutive 25-basis-point rate cut, which would bring the benchmark rate down to 7%.

Meanwhile, the currency pair continues to trade with low volume and limited conviction, hovering around the 18-peso level, which has held as initial resistance. Thin interest and small flows are contributing to notable liquidity gaps.

Wall Street Bets Microsoft Could Reach a $5 Trillion Market Cap

Posted on December 17, 2025 by Ignacio Teson

Analysts argue that the real story lies in how the tech giant has established its own independent role in the AI market.

Microsoft Stock Climbs to all time highs.

Microsoft is drawing growing attention on Wall Street thanks to its position in the artificial intelligence (AI) revolution—and not solely because of its relationship with OpenAI. As a result, analysts believe the company could eventually reach a market capitalization of $5 trillion.

While the two companies remain closely linked, experts say the more compelling narrative is how Microsoft has built an independent foothold in AI, leveraging multiple technological fronts to expand both its business and its market value.

For many Wall Street executives, the Satya Nadella–led tech giant is well positioned to jump to a $5 trillion market cap in 2026, up from roughly $3.6 trillion today, driven by the integration of AI across its core products and services.

Such growth would reflect Microsoft’s ability to capitalize on rising demand for AI technologies without relying entirely on a single partner or underlying model.

Microsoft beyond OpenAI

The relationship between Microsoft and OpenAI dates back to 2019, when Microsoft made an initial $1 billion investment in the then-emerging AI startup led by Sam Altman.

That commitment later expanded to nearly $13 billion, as confirmed by Nadella himself, positioning Microsoft as the exclusive provider of cloud infrastructure and computing power to train and deploy OpenAI’s most advanced models.

The partnership gave Microsoft preferential access to cutting-edge AI technologies, while OpenAI benefited from Azure’s massive cloud platform to scale its models and services.

However, industry experts note that Microsoft no longer depends solely on OpenAI for its AI strategy. The company is also developing its own capabilities and collaborating with a wide range of technology partners, thereby diversifying its sources of innovation and growth.

“Microsoft has such a dominant presence across its entire suite that it will be able to integrate and effectively become a copilot in that sense,” said Logan Brown, founder of software development platform Soxton.AI.

A strong technology ecosystem

Part of Microsoft’s strength lies in its combination of operating systems (such as Windows), cloud services (Azure), and AI-powered tools (like Copilot), which are seeing growing adoption among businesses and consumers alike.

The broad integration of AI into widely used products reinforces investor confidence in the durability of Microsoft’s business model and its competitive edge over other tech giants.

In addition, key figures in the industry, including Bill Gates, have noted that while AI is advancing rapidly, there remains significant uncertainty around how the technology will evolve in the years ahead.

Even so, Gates views Microsoft as a clear contender in the race to shape the future of AI, reinforcing the narrative that the company is well positioned beyond its partnership with OpenAI.

The combination of strategic investments, internal development, and technological alliances has been well received by analysts. Expectations that Microsoft can expand its market value and cement its leadership in artificial intelligence have resonated on Wall Street, which sees the company as a player capable of sustaining—and increasing—its relevance in the next digital era.

Bitcoin Rises to $90,000 but Still Awaits a Market Catalyst

Posted on December 17, 2025 by Ignacio Teson

The cryptocurrency market is trading with a mixed tone and modest moves on Wednesday. Bitcoin (BTC) is up 2.4% at $89,222, according to Binance, while Ethereum (ETH) is trading at $2,974, with both assets posting gains.

Altcoins are broadly following the same pattern, recording mild advances. Solana (SOL) and Dogecoin (DOGE) are leading the gains, up around 1.5%, while most other tokens are rising by less than that.

Ongoing outflows from U.S. spot Bitcoin ETFs have intensified pressure on the leading cryptocurrency, as sustained withdrawals have raised concerns about weakening institutional demand. In this context, a key source of support that had underpinned Bitcoin’s rally earlier this year has faded.

[[BTC/USD-graph]]

At the same time, recent U.S. payroll data pointed to slower job growth alongside a gradual rise in the unemployment rate, failing to provide the Federal Reserve (Fed) with a clear signal of cooling that would justify interest rate cuts.

As a result, markets have become less confident about the pace of future rate reductions, a factor that has weighed on risk assets such as cryptocurrencies. Attention is now turning to U.S. inflation data due to be released on Thursday.

Traditional markets

Meanwhile, major Wall Street indices are trading higher in Wednesday’s premarket session, as investors await additional economic data to assess the trajectory of U.S. monetary policy and keep an eye on geopolitical tensions in Venezuela that have pushed oil prices higher.

Comments are expected later in the day from several influential Federal Reserve officials, including Governor Christopher Waller and New York Fed President John Williams, which could provide further clarity on the policy outlook.

In this environment, the S&P 500, which tracks the largest companies listed in New York, is up 0.34%, while the tech-heavy Nasdaq Composite gains 0.40%. The Dow Jones Industrial Average is also higher, rising 0.21%.

Oil Jumps More Than 2% After Donald Trump Blocks Venezuela

Posted on December 17, 2025 by Ignacio Teson

Brent crude rebounded above $60 a barrel after U.S. President Donald Trump announced a “complete and total” blockade on Venezuelan oil tankers. WTI also posted gains of more than 2%.

Oil market shocked after Venezuela was blocked.

Brent crude prices climbed more than 2% on Wednesday, recovering ground after Trump said the United States would impose a sweeping blockade on all oil tankers operating to and from Venezuela.

The European benchmark rose back above $60 a barrel—a level it had fallen below on Tuesday for the first time since the autumn. Brent was trading at $60.23, up 2.22% from the previous session’s close.

[[USOIL-graph]]

Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, gained 2.29% to $56.39 a barrel, erasing much of the losses accumulated in recent sessions.

Rising tensions around Venezuela

The rally followed Trump’s decision to label the “regime” of Nicolás Maduro a terrorist organization and accuse Venezuela of “seizing” U.S. oil. The president demanded the “immediate” return of oil, land, and other assets that he claimed had been “stolen” from Washington.

Trump said Venezuela is “completely surrounded by the largest navy ever assembled in the history” of the region and warned that pressure on the country “will only intensify.”

“The impact will be something never seen before, until they return to the United States all the oil, land, and other assets,” the U.S. president said.

Oil Outlook for 2026

OPEC projects that global oil consumption will average 106.5 million barrels per day (mbd) in 2026, representing a 1.38% increase from this year. Growth is expected to be led by the United States, Asia, and Latin America, according to the cartel’s December monthly report.

The organization links this increase to expectations that the global economy will maintain a growth rate of 3.1% in both 2025 and 2026. For the year now ending, OPEC estimates average consumption of 105.14 mbd, up 1.3% from 2024.

“This forecast is based on sustained economic and petrochemical activity in the major consuming nations, which is expected to support demand for transportation fuels and distillates in 2026,” OPEC said in its analysis.

Argentina Set to Post the Second-Fastest Growth in South America in 2026

Posted on December 16, 2025 by Ignacio Teson

The country is also expected to outperform most nations in Latin America and the Caribbean.

Argentina’s president Javier Milei gestures as he delivers his inaugural speech.

Argentina is set to record one of the strongest economic growth rates in Latin America in 2026, trailing only a handful of countries, according to a recent report by the Economic Commission for Latin America and the Caribbean (ECLAC).

Based on the organization’s projections, Argentina’s economy is expected to expand by 3.8% in 2026, second only to Paraguay in South America, which is forecast to grow by 4.5%. Even so, this would mark a slowdown compared with the outlook for the end of the current year, when growth is projected at 4.3%.

Across the rest of Latin America and the Caribbean, growth rates higher than Argentina’s are expected only in Costa Rica (+3.9%), Honduras (+3.9%), Antigua and Barbuda (+5%), and Guyana (+24%). Guatemala is also projected to grow by 3.8%, matching Argentina’s pace.

Argentine assets on Wall Street

Argentine stocks listed in New York are also trading mostly higher. Among ADRs, banking stocks such as Grupo Supervielle (+3.1%) and Grupo Financiero Galicia (+3.0%) are leading gains, while Loma Negra is down 0.9%.

At the local level, the S&P Merval index is up 1.5% at 3,056,737.41 points, while its dollar-denominated counterpart rises 0.8% to 1,985.69 points. Shares are broadly higher, led by Aluar (+5.1%), Banco Macro (+2.8%), and BBVA Argentina (+2.4%).

Dollar-denominated sovereign bonds are also posting average gains of around 0.8%, led by the Global 2035. In this context, Argentina’s country risk index is falling sharply, breaking below 580 basis points to 573 bps.

iRobot Files for Bankruptcy as Shares Plunge More Than 70%

Posted on December 16, 2025 by Ignacio Teson

The outcome of the robot maker’s restructuring will also mean that iRobot’s common shares will stop trading on the stock market.

iRobot Corporation, globally known as the maker of Roomba robotic vacuum cleaners, filed for Chapter 11 bankruptcy protection in a Delaware court and announced that it will become a privately held company following an acquisition by its main manufacturing partner and lender, Picea Robotics.

Chapter 11 is a financial restructuring mechanism under U.S. bankruptcy law that allows companies to reorganize their debts and operations under court supervision while continuing to operate.

In this case, iRobot reached a Restructuring Support Agreement (RSA) with its secured lender and manufacturing partner, Shenzhen PICEA Robotics, along with its affiliate Santrum Hong Kong. Under the agreement, Picea will acquire 100% of iRobot through the restructuring process.

Roomba maker files for bankruptcy

The company expects the largely prepackaged process—meaning key terms were agreed in advance with creditors—to be completed by February 2026.

Under the RSA, Picea will receive full ownership of the company, eliminating iRobot’s debt and significantly reducing its financial burden, allowing the reorganized business to continue normal operations.

During the restructuring, iRobot said it will continue operating as usual, including the functionality of its products (such as Roomba apps and device support), customer service programs, relationships with global partners, and its supply chain, with no anticipated disruptions.

A streamlined company

As part of the restructuring, iRobot’s common shares will be delisted and canceled, meaning current shareholders will receive no equity in the reorganized company and no recovery on their investment if the plan is approved by the court. As a result, shares trading on Nasdaq plunged more than 70% on the day.

The bankruptcy filing follows several years of financial challenges for the company. Founded in 1990, iRobot was a pioneer in the household cleaning robot market but has faced intensifying competition from lower-cost Chinese manufacturers offering more advanced features, as well as pressure from tariffs on products made in Asia.

The company also struggled after the collapse of a planned acquisition by Amazon in 2024, which ultimately failed to materialize.

Magnificent Seven Lag in 2025, Raising Concentration Risks

Posted on December 16, 2025 by Ignacio Teson

Although Alphabet and Nvidia posted solid gains, several of Wall Street’s other leading stocks delivered more modest results.

The Magnificent Seven stocks. — The Magnificent Seven of WS.

The group of mega-cap technology companies known as the “Magnificent Seven”—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—has for years been the main engine of the U.S. stock market. But the picture looks different in 2025.

These seven stocks drove a large share of the S&P 500’s performance and became synonymous with technological leadership, especially during the artificial intelligence (AI) boom. However, the latest data show that their performance this year has been far from stellar. In fact, five of the seven have lagged the broader market so far this year.

Year-to-date performance of the “Magnificent Seven” in 2025:

Alphabet: +63%
Nvidia: +30.33%
Tesla: +13.65%
Microsoft: +13.53%
Apple: +11%
Meta: +10%
Amazon: +3%

By comparison, the S&P 500 is up 16% and the Nasdaq Composite has gained 20%.

Uneven performance among Big Tech

While companies such as Alphabet and Nvidia have still delivered strong gains, several of the other major names have posted more subdued results—or have underperformed relative to the S&P 500. This partly reflects greater dispersion within the group itself: some tech giants are growing faster than others, and not all are contributing equally to index gains.

This pattern has led some analysts to question the wisdom of concentrating investments solely in these seven names. The fact that some members are no longer among the year’s top performers is striking and contrasts with the extraordinary historical returns that originally justified the label.

Concentration risk and rotation toward traditional sectors

Another growing concern is concentration risk. The combined weight of these stocks now represents a substantial share of the S&P 500, meaning their performance can distort perceptions of the broader market.

When a small group of stocks dominates an index, a pullback in that group can drag down the entire market—even if many other companies are performing well.

At the same time, investors have been rotating toward more traditional or value-oriented sectors, such as energy, industrials, and financials, which have been gaining traction as alternatives to mega-cap tech.

Opinions differ on whether this slowdown is temporary or the start of a deeper shift. On one hand, Goldman Sachs continues to project that the Magnificent Seven will lead earnings growth in 2026, though it also notes signs that broader market participation is beginning to emerge.

Nasdaq Seeks Longer Trading Hours as Wall Street Wants 24/7 Trading

Posted on December 16, 2025 by Ignacio Teson

The stock market operator will submit documentation to the SEC on Monday to implement continuous trading. The move aims to capitalize on global demand for U.S. equities, although major banks remain cautious due to concerns over thinner liquidity and higher volatility.

Nasdaq, one of Wall Street’s main exchanges and home to technology giants such as Nvidia, Apple, and Amazon, will take a key step on Monday in its plan to extend trading to 24 hours a day. The exchange will file the necessary paperwork with the U.S. Securities and Exchange Commission (SEC) to launch round-the-clock trading, an initiative designed to tap into growing global appetite for U.S. stocks.

Demand for continuous trading has increased significantly in recent years, prompting regulators to ease rules and allow major exchanges to propose operating hours beyond traditional sessions. U.S. equity markets account for nearly two-thirds of global listed market capitalization, while foreign holdings of U.S. stocks reached $17 trillion last year, according to data compiled by Nasdaq.

The SEC filing marks Nasdaq’s first formal step toward implementing 24-hour trading, five days a week. In March, Nasdaq President Tal Cohen said the company had begun discussions with regulators and expected to roll out continuous trading in the second half of 2026. The New York Stock Exchange (NYSE) and Cboe Global Markets have also recently announced similar plans to operate around the clock.

“There has long been a trend toward globalization, and we’ve seen U.S. markets become far more global,” Chuck Mack, Nasdaq’s senior vice president of North American markets.

New operating structure

Nasdaq plans to extend trading hours for stocks and ETFs from 16 to 23 hours a day, five days a week. Currently, the exchange operates across three daily sessions: premarket trading (4:00 a.m. to 9:30 a.m. ET), the regular session (9:30 a.m. to 4:00 p.m.), and after-hours trading (4:00 p.m. to 8:00 p.m.).

Under the new structure, trading will be divided into two sessions. The daytime session will run from 4:00 a.m. to 8:00 p.m., followed by a one-hour break for maintenance, testing, and clearing. The overnight session will begin at 9:00 p.m. and end at 4:00 a.m. the following day.

The daytime session will retain the traditional opening bell at 9:30 a.m. and closing bell at 4:00 p.m. During the overnight session, trades executed between 9:00 p.m. and midnight will be recorded as transactions for the following trading day. The trading week will begin on Sunday at 9:00 p.m. and conclude on Friday at 8:00 p.m.

Tesla Shares Surge to a Record High on Wall Street

Posted on December 15, 2025 by Ignacio Teson

Shares of electric vehicle maker Tesla are rallying sharply in Monday’s session on Wall Street, hitting a new all-time high.

Tesla is ramping up production on their new Cybercab.

The stock is being lifted after reports that company directors posted unexpected gains, despite not having been granted new shares since 2020.

Shares of Elon Musk’s company are up 3.96% at $477.33, reaching previously unseen levels. The prior record high was set on November 3, when the stock closed at $468.37.

On a year-over-year basis, Tesla is up 18.17%.

[[TSLA/USD-graph]]

According to Reuters, “Tesla’s board of directors earned more than $3 billion through stock awards that far exceeded the value of those granted to their counterparts at the largest U.S. technology companies at the time they were paid.”

In a statement to Reuters, a Tesla spokesperson said that director compensation “is not excessive, but rather directly linked to stock performance and value creation for shareholders.”

The company’s CEO also said on X that Tesla is testing its robotaxis without safety supervisors in the front seat, a development that quickly circulated across financial news outlets.

The broader market

The S&P 500, which tracks the largest companies listed in New York, is down 0.16%, while the tech-heavy Nasdaq Composite falls 0.34%. The Dow Jones Industrial Average is also lower, slipping 0.23%.

Even so, heading into the final stretch of the year, major Wall Street indices are posting broad gains in 2025 and hovering near record highs. Over the past year, the Nasdaq is up 16%, the S&P 500 has gained 12.65%, and the Dow Jones has risen 10.40%.

Key themes for the week ahead

Caution remains among investors, as the week is packed with major decisions from the world’s leading central banks, alongside the release of delayed U.S. economic data.

Among the central banks meeting this week, the Bank of Japan is expected to raise interest rates by 25 basis points to 0.75%, while the Bank of England could deliver a cut of the same magnitude, bringing rates down to 3.75%.

The European Central Bank is widely expected to leave rates unchanged, along with Sweden’s Riksbank and Norway’s Norges Bank.

Investors will also have a chance to catch up on U.S. economic data that were delayed by the federal government shutdown, including the November jobs report and the monthly consumer price index, scheduled for release on Tuesday and Thursday, respectively.

Bitcoin Falls to $87,000 Ahead of Key Fed Data

Posted on December 15, 2025 by Ignacio Teson

The leading cryptocurrency showed little movement over the past week and is now waiting for market signals to gauge its next direction.

The cryptocurrency market is trading with limited moves at the start of Monday’s session. Bitcoin (BTC) is priced at $87,846, according to Binance, amid a backdrop of moderate risk appetite. Ethereum (ETH) is also lower, down 1.1% at $3,052.

Altcoins are broadly in negative territory. TRON (TRX) stands out as the sole gainer, up 1.9%, while most other tokens are trading lower.

[[BTC/USD-graph]]

Focus on Fed data and signals

In recent sessions, Bitcoin has struggled to gain traction, with investors reluctant to take on new positions. That said, several key releases are expected to shape interest rate expectations in the days ahead. Upcoming U.S. employment data, weekly jobless claims, November inflation figures, and preliminary December PMI readings will help determine the strength of the U.S. economy.

In addition, speeches by Federal Reserve officials Stephen Miran and Christopher J. Waller will be closely watched for clues on the future path of rates.

Markets are also bracing for policy decisions this week from the Bank of Japan, the Bank of England, and the European Central Bank, after recent central bank meetings further eroded confidence in risk assets.

Traditional markets

Wall Street futures point to a rebound after last week’s sharp losses. Still, caution prevails among investors, as the week is packed with major central bank decisions and the release of lagging U.S. economic data.

In this context, the S&P 500 is up 0.32%, the tech-heavy Nasdaq Composite gains 0.25%, and the Dow Jones Industrial Average rises 0.28%.

Top gainers include KLA Corp (+5%), Gardner (+4.6%), and Akamai (+4.3%). On the downside, the steepest losses are seen in ServiceNow Inc (-8.35%) and CoStar (-4.51%).

Looking toward the final stretch of the year, major Wall Street indices are posting broad gains in 2025 and remain near record highs. Over the past year, the Nasdaq is up 16.40%, the S&P 500 has gained 12.83%, and the Dow Jones is higher by 10.56%.