October ended on a positive note in the financial markets, with the main stock market indexes registering widespread advances. The S&P 500 rebounded 2.3%, while the Nasdaq led the way with a 4.7% rise, driven by better-than-expected corporate results and the persistent strength of the technology sector. So far this year, the Nasdaq has accumulated an increase of close to 23%, consolidating its role as a market driver, while the Dow Jones and the S&P 500 posted gains of 12% and 16%, respectively. The industrial sector performed well, particularly in transportation and construction, while consumer staples lagged in relative terms.

Meanwhile, the third quarter corporate reports of the companies that make up the S&P 500 far exceeded market expectations. On a year-over-year basis, the index's aggregate earnings grew 10.7%, driven mainly by the financial and technology sectors. This expansion in operating margins has raised the average profitability of S&P 500 companies to historically high levels, close to 12% net margin, reflecting the efficiency with which companies have managed financial costs and preserved their ability to generate value. Analysts anticipate that this positive trend will continue, projecting earnings growth of 13.7% in 2026.

In the fixed income markets, the US Treasury yield curve showed downward movements in all tranches, with the 10-year bond closing at 4.1%, its lowest level since May. Shorter maturities declined less sharply, causing a further flattening of the curve. This behavior reflects the expectation of further cuts in the benchmark rate during the first half of 2026, in line with the moderation of inflation as measured by the PCE (Personal Consumption Expenditures) index, which stood at 2.7% y-o-y, and core inflation of 2.9%. Investment grade corporate bonds maintained a stable performance, while the high yield segment continued to benefit from solid economic data.

On the international front, emerging markets registered an average gain of 4.3%, supported by the weakness of the dollar and the rebound in commodity prices, particularly copper. Added to this positive environment was the announcement of a new trade truce between the United States and China, which marked an easing of tensions in bilateral relations after months of friction over China's control of exports of rare minerals, critical inputs for the technology and clean energy industries. The understanding between the two powers not only reduced the perception of geopolitical risk, but also prompted markets to discount greater stability in global supply chains, particularly favoring countries exporting raw materials and manufacturing.

Gold also advanced around 4% in October, consolidating its role as a safe-haven asset in an environment of monetary normalization. In contrast, cryptocurrencies showed a negative performance during October after strong increases in previous quarters, although Bitcoin maintains a year-to-date gain of close to 16%.

In Mexico, headline inflation stood at 3.6% at the end of October, while core inflation remained at 4.3%, confirming a downward trajectory although still above the Bank of Mexico's target. In its decision on November 6, the central bank reduced the reference rate to 7.25%, maintaining a cautious tone in the face of an uncertain external environment. Finally, the Mexican peso closed the month at 18.55 pesos per dollar, showing stability despite global volatility.

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