Ibovespa Falls to Lowest Since January

The Ibovespa fell 0.7% to close at 168,619 on Wednesday, extending losses to its lowest level since January as escalating geopolitical tensions fueled risk aversion. US President Donald Trump warned that Washington would strike Iran “with great force” if no peace agreement is reached after Tehran downed a US helicopter near the Strait of Hormuz, raising concerns over a broader conflict. Higher crude prices pushed bond yields up and reinforced expectations of a more hawkish BCB. Market pricing now suggests a pause in the central bank's easing cycle at next week's meeting, with investors increasingly betting that the next move in interest rates will be upward. Banks traded lower, with Bradesco down 1%. WEG extended losses, falling 2.2% after reporting weaker-than-expected earnings on Tuesday. Other notable laggards included Vale (-1%), Rede D'Or (-2.5%), and Embraer (-4.2%). On the upside, Petrobras gained 1.2% on higher oil prices.

The Ibovespa edged down to trade below 169,500 on Wednesday amid escalating tensions in the Middle East. Oil prices rebounded following renewed retaliatory attacks between the US and Iran, while hopes for a deal that could restore oil flows through the Strait of Hormuz faded. Higher crude prices pushed bond yields up on concerns about energy-driven inflation and reinforced expectations of a more hawkish BCB. Market pricing now suggests a pause in the central bank's easing cycle at next week's meeting, with investors increasingly betting that the next move in interest rates will be upward. Banks traded lower, with Itaú and Bradesco down about 1%, while utilities also weakened, with Axia shedding more than 1%. Vale fell nearly 1% despite higher iron ore prices. WEG extended losses, down more than 1% after reporting weaker-than-expected earnings on Tuesday. Meanwhile, election polls showed President Lula widening his lead over Senator Flávio Bolsonaro.

The Ibovespa gained 0.7% to close at 169,813 on Tuesday as lower oil prices eased inflation concerns and pushed bond yields lower, supporting financial stocks and the broader market. Itaú climbed 1.8%, Bradesco added 1.2%, and Itaúsa gained 1.3%. Utilities also advanced, with Sabesp rising 1.7%. Other notable performers included Ambev (+0.8%) and Rede D'Or (+1.9%). On the downside, WEG lost 1.5% after reporting first-quarter 2026 results that fell short of expectations, with net profit down 5.7% from a year earlier.