Brazil stock market drops as EWZ falls 26% after Lula election victory
CIE News ·
Based on reporting by Decrypt; not yet independently confirmed.
Brazilian markets fell sharply on October 26 after Luiz Inácio Lula da Silva won the runoff election, with EWZ dropping up to 26% and the B3 exchange halting trading.
Brazilian markets lost over $200 billion in value on October 26, 2026, following Luiz Inácio Lula da Silva's presidential runoff victory over Flávio Bolsonaro, Decrypt reported. The iShares MSCI Brazil ETF (EWZ) fell by up to 26% from Friday's close of about $42.60 to $31.40 before rebounding to $32.84, while Brazil's benchmark Ibovespa index dropped as much as 17% to roughly 170,000 points. The São Paulo exchange, B3, triggered a 30-minute circuit breaker after the index dropped 10% from the previous session's close.
The decline followed a surprise defeat for Bolsonaro, whom prediction markets Polymarket and Kalshi had favored with approximately 80% to 82% winning odds ahead of the vote, Decrypt reported. Brazil's Superior Electoral Court reported that Lula secured 51.79% of valid votes compared to Bolsonaro's 48.21%. In response to the outcome, Bolsonaro stated outside his Brasília headquarters that he would challenge the results in court and seek an annulment.
Key facts
- EWZ fell up to 26%
- Ibovespa dropped as much as 17%
- B3 halted trading for 30 minutes
- $200B in market value lost