Brazilian assets fall as much as 45% in US premarket trading

Brazilian assets fell sharply, by as much as 45%, in US premarket trading on the morning of October 26, 2026, according to the newspaper Folha de S.Paulo, after President Luiz Inácio Lula da Silva won the presidential runoff against Senator Flávio Bolsonaro.

The reaction in international markets reflected uncertainty about the new term of government, which will begin on January 5, 2027, after a hotly contested election in which the candidate of the Workers' Party prevailed by a margin of more than 3.5%, according to data published by the outlet Infobae.

On Wall Street, the tension spread to large banks and Brazilian depositary receipts, with declines approaching 30%, according to La Tercera. The sharp contraction raised alarms among investors over the possibility that a circuit breaker would be triggered, a market mechanism that temporarily halts trading for 30 minutes when the Ibovespa index posts losses greater than 10%.