Stocks Mixed Ahead Of Fed Minutes, Mexican Peso Tumbles To Over 2-Year Lows On Tariff 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 (NYSE:EWW) also …

Full story available on Benzinga.com

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