Ibovespa circuit breaker triggered for 24th time as index plunges 17%

Brazilian stock exchange trading was suspended for 30 minutes today after the Ibovespa index plunged over 17% in reaction to President Lula's reelection, marking the 24th time the circuit breaker mechanism has been triggered in the country's history. The last activation occurred during the Covid-19 pandemic in March 2020, when the mechanism was triggered six times, including twice on March 12, with daily falls ranging from 7.64% to 13.92%. The circuit breaker, created by B3 in 1997, halts trading for 30 minutes when the index drops 10%. Today's decline contrasts sharply with the post-first-round rally, when the index hit a record high above 209,000 points.