Mexico’s Stock Market Rebounds Sharply on July 23 Following Previous Decline

Mexico’s leading stock index, the IPC, rebounded strongly on July 23, 2025, climbing 1.73% to close at approximately 56,480 points. This sharp turnaround followed the previous day’s decline driven by fears over potential new U.S. tariffs.

Investors found relief in easing trade tensions and positive corporate earnings reports. Restaurant operator Alsea led the day’s gainers, surging 15% to close at 55.00 pesos, supported by robust trading volumes of 2.38 million shares.

Low-cost airline Volaris climbed 6.83%, reflecting renewed investor confidence in consumer sectors. Tequila producer Becle rose significantly by 4.62%, reaching 22.18 pesos, after posting strong quarterly earnings boosted by foreign exchange gains.

Retail giant Walmex increased by 4.57%, while Grupo Carso advanced by 4.50%. However, not all stocks experienced gains. Coca-Cola Femsa fell 4.20%, indicating ongoing sector-specific pressures.

The Mexican Stock Exchange (Bolsa Mexicana) and insurer Quálitas also recorded declines, dropping 2.02% and 2.04%, respectively, likely due to fund reallocations into cyclical, growth-oriented stocks.

Technically, the rebound on July 23 appears noteworthy. The IPC daily chart shows prices rising clearly above short-term moving averages, indicating increasing short-term bullishness.

Despite this positive move, the MACD indicator remains negative, suggesting underlying market caution. The Relative Strength Index (RSI) improved to around 46, but remains neutral, indicating limited momentum.

The Global Liquidity Index (NDQ), represented by the yellow line, remained stable, reinforcing improved market sentiment. Bollinger Bands suggested reduced volatility and potential consolidation, implying the recent sell-off might have temporarily bottomed out.

Higher trading volumes further validated the day’s positive sentiment. Fundamentally, market sensitivity to external factors, particularly U.S. trade policy, remains high.

The fears of additional U.S. tariffs on July 22 briefly impacted market confidence and the peso’s stability. However, signals of de-escalating trade risks on July 23 encouraged investor re-entry into the market.

Broader economic concerns persist, highlighted by Mexico’s substantial financial support to state-owned Pemex, reflecting underlying fiscal strains. Meanwhile, Iberdrola‘s exit from state control signals significant shifts within Mexico’s energy sector, highlighting ongoing investor risks.

Overall, the market rebound on July 23 reflected investor relief rather than outright optimism, with caution advised as ongoing tariff discussions continue to influence market direction.