Ibovespa Tumbles From Record High

2026-02-04 21:16 By Felipe Alarcon 1 min. read

The Ibovespa slid 2.1% to close at 181,708 on Wednesday, marking a sharp correction after fresh record highs and driven primarily by heavy losses in financials amid renewed concerns over asset quality and policy signals.

Bank stocks led the decline, with Santander down 2.8% despite reporting higher quarterly profits as rising delinquency rates and a challenging macro backdrop weighed on sentiment, while Itaú, Bradesco, Banco do Brasil and B3 all fell between roughly 2.6% and 4.4%.

The selloff extended beyond banks, with WEG plunging 5%, Embraer down 4.1%, and utilities and consumer names broadly weaker.

In contrast, Vale edged 0.4% higher, offering limited support despite softer iron ore prices.

The session reflected a combination of profit taking after the recent rally, investor caution following Copom guidance and lingering fiscal concerns after new spending measures were approved, all of which reinforced a broad risk reduction across Brazilian equities.



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