Brazilian Stock Exchange Loses R$734 Billion in Single Day After Lula Victory

Brazilian stock exchange B3 lost R$734 billion in market value on Monday, October 26, 2026, following Luiz Inácio Lula da Silva's presidential election victory. The 12.91% single-day drop reduced total market value from R$5.684 trillion to R$4.950 trillion, according to consultancy Elos Ayta. The loss equals 98.4% of Petrobras's market value, estimated at R$746 billion. It erased 75.5% of the R$972 billion gains accumulated in 2026, leaving a positive balance of R$238 billion. The decline reversed gains from October 2-23, when market value had risen R$409 billion. Despite the drop, B3's market value remains 5.05% above its end-2025 level. The figure reflects falling stock prices and changed investor expectations about Brazil's economy, interest rates, and fiscal policy, not an actual cash outflow from the exchange.