Stocks Mixed Ahead Of Fed Minutes, Mexican Peso Tumbles To Over 2-Year Lows On Tariffs Fears: What's Driving Markets Tuesday?

The U.S. stock market traded mixed on Tuesday morning, with major indices showing tight movements as investors awaited the release of the Federal Reserve's November meeting minutes.

Reports are expected to provide fresh critical insights into the central bank's outlook for interest rates. Fed futures currently assign a 59% probability of a 25-basis-point rate cut in December. The remaining odds suggest the Fed may hold rates steady in the 4.5%-4.75% range, as per CME FedWatch.

Fed futures are currently assigning a 59% chance to a 25-basis-point Fed rate cut in December, while remaining odds point to the option of holding rates steady at 4.5%-4.75%, as per CME FedWatch.

25% Tariffs On All Imports

In a relatively quiet trading session, both Mexican and Canadian assets saw a surge in volatility after President-elect Donald Trump pledged to raise tariffs to 25% on all imports from Mexico and Canada, citing efforts to combat drug trafficking and illegal immigration.

The Mexican peso dropped 2.5%, falling to 22.80 per U.S. dollar, a level of weakness not seen since August 2022. The iShares MSCI Mexico ETF EWW also declined sharply, tumbling 2.9%.

President Claudia Sheinbaum responded with a retaliatory warning, suggesting Mexico could impose its own tariffs, escalating the risk of economic damage for both nations.

The Canadian dollar fared slightly better, sliding 0.7% but still reaching its lowest level in more than four years.

U.S. Treasury yields ticked higher, reversing some of the sharp declines seen on Monday following President-elect Trump's announcement of Scott Bessent as his pick for Treasury Secretary. The iShares 20+ Year Treasury Bond ETF TLT fell 0.5%, cooling off after Monday's 2.6% rally.

Gold traded flat, remaining near $2,010 per ounce. Oil prices fell 0.8% to $68.30 per barrel, as markets monitored developments around the ceasefire deal between Israel and Hezbollah as the Israeli Security Cabinet meets for the official approval.

Bitcoin BTC/USD rose slightly by 0.7%, after logging its worst single-day performance in more than four months on Monday.

Tuesday’s Performance In Major US Indices, ETFs

Major Indices	Price	% (1-day)
S&P 500	6,013.26	0.4%
Nasdaq 100	20,891.08	0.4%
Dow Jones	44,656.98	-0.2%
Russell 2000	2,426.91	-0.6%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY edged 0.4% higher to $596.83, eyeing the seventh straight session of gains.
• The SPDR Dow Jones Industrial Average DIA inched 0.1% lower to $447.10.
• The tech-heavy Invesco QQQ Trust Series QQQ rose 0.5% up to $508.98.
• The iShares Russell 2000 ETF IWM fell 0.4% to $241.28.
• The Utilities Sector Select Sector SPDR Fund XLU outperformed, rising 1%. The Materials Select Sector SPDR Fund XLB lagged, down 0.9%.

Tuesday’s Stock Movers

• Shares of automakers fell after President-elect Donald Trump threatened tariffs on goods imported from Canada and Mexico. Ford Motor Co F, General Motors Co GM and Stellantis N.V. STLA were down 2.3%, 8.4% and 5.3%, respectively. For GM this may potentially mark the worst day since August 2021.
• Eli Lilly & Co. LLY rose 5.4% while Amgen Inc. AMGN tumbled over 8%, after the latter saw weight-loss drug results coming in below analyst expectations.
• Zoom Video Communications Inc. ZM fell over 7% in reaction to quarterly earnings.
• Other stocks reacting to quarterly results included Semtech Corp. SMTC, up 18%, Analog Devices Inc. ADI, down 3%, Agilent Technologies Inc. A, down 1.8%, Woodward Inc. WWD, up 6%, Best Buy Co. Inc. BBY, down 7%, Dicks Sporting Goods Inc. DKS, down 0.2%, VinFast Auto Ltd. VFS, up 1%.

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