Brazilian stocks plunged in pre-market trading on Monday after President Luiz Inácio Lula da Silva won a surprise re-election against his right-wing challenger Flávio Bolsonaro, reversing a rally earlier this month.
The iShares MSCI Brazil ETF (EWZ) fell 26% premarket, a decline that, if continued through Monday, would mark its biggest one-day decline since 2000, according to data from Yahoo Finance. Its previous record was a 23% drop in March 2020.
Brazilian stocks surged after Bolsonaro’s unexpected first-round lead on Oct. 4, with investors betting that former President Jair Bolsonaro’s son would usher in more business-friendly policies.
Heading into Sunday’s runoff, polls showed Bolsonaro holding a narrow lead, while Kalshi’s prediction market suggested a larger advantage.
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