Brazil's Ibovespa plunges 13.88% after Lula's reelection; consumer stocks drop up to 58%

Brazil's stock market plunged Monday after Luiz Inácio Lula da Silva's reelection, with the Ibovespa index falling 13.88% to 176,608 points after triggering a circuit breaker following an initial drop of over 10%. The selloff hit consumer and domestic-market stocks hardest, with Magazine Luiza down 58.23%, Vamos falling 56.79%, and Hapvida losing 54.93%. Major banks also declined, including Banco do Brasil (-27.31%) and BTG Pactual (-24.83%), while Petrobras shares fell over 8%. Exporters gained as the dollar rose 8.21% to R$5.40, with Suzano up 10.08%, Embraer gaining 8.89%, and Vale rising 4.01%. Analysts expect continued volatility as investors reassess economic policy expectations under the new government.