Brazil's Lula wins presidency, triggering major market sell-off; neocloud stocks hit by Elon Musk's warning.

Luiz Inácio Lula da Silva won an unprecedented fourth term as Brazil's president, causing a sharp sell-off in Brazilian assets with the iShares MSCI Brazil ETF dropping over 20%. Rival Bolsonaro refused to concede and challenged the election process. Markets reacted negatively as Bolsonaro was seen as more market-friendly, while Lula faces pressure to stabilize Brazil's debt. Meanwhile, Elon Musk criticized struggling neocloud stocks, causing further declines in shares like CoreWeave and Nebius. Investors also watch upcoming central bank decisions and tech earnings this week.

As of Oct 26, 2026 18:03 WIB, the iShares MSCI Brazil ETF (EWZ) is trading at USD 31.72 on Pluang, down 25.52% in one day, reflecting a significant drop in Brazilian market sentiment. Ambev S.A. shares also fell, with a 12.42% decline to USD 2.89, showing pressure on major Brazilian consumer stocks. The market cap of EWZ stands at $13.96 billion, highlighting the scale of investor reaction to recent political developments.