Ibovespa has the biggest weekly drop since 2020 after Lula's election and the dollar accumulates an increase of 9%
Index loses 18.12% in the week, B3 records losses approaching R$1 trillion and the dollar advances with interest and taxes on the radar.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM REVISTA OESTE · 2 MIN
The Ibovespa ended Friday, October 30th, at 167,921.80 points, after a week of decline of 18.12%. According to InfoMoney, it was the biggest weekly drop since March 2020, when the index fell 18.88%. The fall came shortly after Lula's re-election, who defeated senator Flávio Bolsonaro (PL) in the second round, held the previous Sunday.
In the first trading session after the vote, the index fell by up to 17% and closed down 13.88%, according to Seu Dinheiro. The loss was so intense that it triggered the circuit breaker, a protection mechanism that comes into action when the drop exceeds 10%.
In terms of market value, Revista Oeste calculates that B3 lost almost R$1 trillion in five trading sessions. InfoMoney, with data from Elos Ayta, reports a loss of R$963 billion for listed companies this week, the fifth biggest weekly drop since the Real Plan.
The exchange rate followed the movement. According to Gazeta, the dollar accumulated an increase of 9% and reached the highest exchange rate in 2026, while Revista Oeste records an increase of more than 9%. Future interest rates also rose sharply, in the same direction as the exchange rate.
For Revista Oeste, the main cause is distrust with the economic policy of Lula's next term. InfoMoney lists additional reasons: worsening expectations for interest rates and public accounts, coupled with risk aversion abroad. During the month, the Ibovespa accumulated a drop of 9.88%, according to the same publication.
For those who defend fiscal responsibility and less State interference in the economy, the message from the auction is straightforward: the credibility of public accounts began to weigh more on asset prices. The debate about the trajectory of debt and the direction of interest rates therefore gains direct weight in company prices.
What changes for the investor
In practice, the scenario requires increased attention to the fiscal agenda and the trajectory of interest rates, which are the factors highlighted by the sources for the recent movement. B3 companies more exposed to exchange rates and the cost of credit may react more intensely to these signals, and volatility tends to remain high as long as doubts persist. This text does not recommend the purchase or sale of any asset and does not project prices; It is up to each investor to evaluate their profile and risks.
Automatically translated from Portuguese.
