Banco Bradesco shares plunge 31% after Lula's Brazil election win
Banco Bradesco SA ADR stock plunged 31.3% in pre-market trading to $2.794 after President Luiz Inácio Lula da Silva’s surprise re-election in Brazil’s October 25 runoff, triggering a massive sell-off in U.S.-listed Brazilian shares. Markets had positioned for a victory by right-wing senator Flávio Bolsonaro, expecting fiscal consolidation and lower interest rates, but Lula’s win reversed that consensus trade. Bradesco’s Q3 2026 earnings showed non-performing loans rising to 4.6% from 4.1%, with credit quality concerns persisting into 2027. The Brazilian real tumbled, and a Tokyo-listed Bovespa ETF fell nearly 15%, while U.S. indices rose, confirming the crash was Brazil-specific. With public debt exceeding 82% of GDP, investors demand a steep risk premium on Brazilian financial assets.