Stock markets performed modestly in July.

The Nasdaq tech index failed to gain in the seventh month of the year due to volatility in tech firms.

Mexico’s stock exchanges concluded one of their best sessions in recent weeks on Wednesday, rebounding after a negative streak and incorporating some positive sentiment from the U.S. monetary outlook.

On the last trading day of July, the main index of the Mexican Stock Exchange (BMV), the S&P/BMV IPC, rose by 1.47% to 53,093.97 points, while the FTSE-BIVA, the most representative index of the Institutional Stock Exchange (Biva), increased by 1.28% to 1,084.81 points.

In July, both indices gained 1.24% and 1.16%, respectively.

The indicators showed their first rise in seven trading days and the fastest in three weeks. Stock baskets had positive starts on Monday and Tuesday, which turned into new declines.

With no local data, traders absorbed the news that the U.S. ADP private payroll was below expectations, while pending home sales rose more than anticipated.

The local and international markets focused mostly on the Federal Reserve’s monetary policy decision, where the U.S. central bank held rates steady but left the door open for a possible move in September.

Investors in Mexico and internationally expect U.S. interest rates to start declining this year, aligning with the Fed’s statements on Wednesday.

Later in the week, the outlook will be complemented by the U.S. employment report.

In the past month, the best-performing companies in the S&P/BMV IPC were the mining company Industrias Peñoles (+14.48%), mainly due to rising metal prices, followed by the health products and drug retailer Genomma Lab (+11.80%); the retailer Chedraui (+9.27%); the bottler Coca-Cola FEMSA (+7.77%); and the copper miner Grupo México (+6.70%).

The S&P 500 and the Nasdaq closed higher on Wednesday as chip stocks rose and the Federal Reserve left interest rates unchanged but indicated it could begin easing monetary policy in September if inflation cools.

At the end of the last trading session of July, the Dow Jones Industrial Average gained 0.24% to 40,842.79 units, the S&P 500 rose 1.58% to 5,522.3 points, and the Nasdaq Composite advanced 2.64% to 17,599.4 points.

However, for the month, the Dow Jones gained 4.40% and the S&P 500 rose 1.13%, while the Nasdaq Composite fell 0.70%, despite the rally in tech stocks and AI chip makers.

The Nasdaq and S&P 500 showed their fastest rise since February, supported by the tech sector; however, the Dow remained the closest to recovering historic highs.

The market factored in that the ADP private payroll showed employment growth below expectations, contributing to hopes for a necessary labor market easing to start lowering interest rates.

Traders are still awaiting the U.S. employment report on Friday to complete the outlook.