Argentina Stocks Soar Over 5%: Milei-Trump Diplomacy Sparks Market Euphoria

Image Source: The Rio Times

Argentina’s main stock index surged more than 5% in early trading on September 24, 2025, fueled by investor optimism ahead of a high-profile meeting between President Javier Milei and US President Donald Trump. The rally reflects growing confidence in Argentina’s reform trajectory and potential US economic support.

Key Highlights:

1. The Buenos Aires benchmark index jumped over 5% in morning trade, extending Monday’s sharp gains across equities and sovereign bonds.
2. US Treasury Secretary Scott Bessent’s recent remarks that all support options are on the table—including swap lines and direct dollar purchases—have energized investor sentiment.
3. Argentine dollar bonds rose as much as 2.3 cents before easing slightly, while the peso strengthened nearly 5% against the dollar after last week’s reserve depletion.

Market Momentum:

- US-listed Argentine stocks saw premarket gains, with Banco BBVA Argentina up 6%, Grupo Financiero Galicia rising 2%, and energy major YPF climbing 2.5%.
- The MSCI Argentina Index and local equity benchmarks reflected broad-based buying across financials, energy, and consumer sectors.
- Monday’s rally had already delivered a 15% gain on the index of Argentine stocks trading on US exchanges.

Investor Outlook:

- The anticipated Milei-Trump meeting is seen as a potential turning point for Argentina’s fragile economy.
- Investors are speculating on the form and scale of US support, with expectations ranging from investment-linked loans to currency stabilization mechanisms.

Sources: Reuters, Money US News, MarketAxess, Economic Times