Ibovespa Dips as US-Iran Peace Hopes Fade

The Ibovespa lost near 1% to hover below the 180,000 mark on Wednesday as fading expectations for a US-Iran peace agreement weighed on sentiment. The stalling of negotiations this week reduced prospects for a reopening of the Strait of Hormuz, while concerns over stagflation pressures and higher bond yields continued to pressure banks and the broader market. Most stocks traded lower. In the banking sector, Bradesco and Banco do Brasil shed about 0.5%, while utilities also weakened, with Sabesp and Azzas down more than 0.5%. Petrobras and WEG both lost close to 1%. On the upside, Vale gained nearly 1% amid higher iron ore prices. After the close, Banco do Brasil, CSN (+0.5%) and Eneva (-0.6%) are set to report earnings results.

The Ibovespa fell 0.9% to close at 180,342 on Tuesday, pressured by disappointing Petrobras results and losses in banking stocks. Petrobras dropped 1.6% after reporting a 7.2% annual decline in first-quarter 2026 profit, alongside weaker adjusted EBITDA and lower diesel and gasoline revenues. Major banks also traded lower as Brazil’s inflation rate accelerated in April, driven by higher food and fuel prices and moving closer to the upper limit of the central bank’s target range. The data reinforced concerns that persistent inflationary pressures could slow the pace of future Selic rate cuts. Higher bond yields also fueled worries over borrowing costs and weaker credit demand. Itaú fell 1.1%, Bradesco lost 0.9%, and Itaúsa declined 1.7% despite solid quarterly results. On the upside, Hapvida surged 9.3% after posting earnings above expectations.

The Ibovespa fell near 1% to trade below 181,500 on Tuesday, pressured by underwhelming results from Petrobras. Shares of the oil producer fell about 2% after the company reported a 7.2% annual decline in first-quarter 2026 profit, alongside weaker adjusted EBITDA and lower diesel and gasoline revenues. Major banks also traded lower as Brazil’s inflation rate picked up in April, driven by higher food and fuel prices and moving closer to the upper limit of the central bank’s target range. The data reinforced concerns that persistent inflationary pressures could slow the pace of future Selic rate cuts. Higher bond yields added to worries over borrowing costs and weaker credit demand. Itaú and Bradesco both lost nearly 1%, while Itaúsa fell over 1% despite reporting solid first-quarter results. Vale also declined nearly 2% as iron ore prices weakened amid elevated inventories in China. On the upside, Hapvida surged more than 7% after posting earnings above expectations.