Brazil Markets Crater After Lula Victory, Though Reported Losses Fall Short of 50%

Brazilian markets fell sharply Monday after President Luiz Inácio Lula da Silva defeated Flávio Bolsonaro in the presidential runoff. The iShares MSCI Brazil ETF dropped 21% in afternoon trading, while Bradesco shares fell 30%; the Bovespa index was down 14% after trading was briefly halted. Those figures do not support the headline’s claim that some stocks sank 50%. Investors had favored Bolsonaro as more business-friendly, and Lula’s surprise win prompted fresh concern about fiscal policy and the market outlook. Volatility could persist as investors assess the implications.