Brazil's Ibovespa surged by 3.3% on Wednesday, reaching an unprecedented level of 171,817, surpassing its global counterparts. This impressive rise was driven by significant capital inflows and declining domestic borrowing costs, which spurred a comprehensive uptick across the index's major components. Leading the charge were banks and market-sensitive stocks, buoyed by a steep decline in future interest rates. This reduction alleviated valuation pressures on sectors sensitive to interest rates and sparked increased interest in financial stocks. Banco do Brasil, Bradesco, and Itaúsa saw gains ranging from 3.5% to 5.1%. The rally was further bolstered by commodity giants, with Vale gaining 3.3% and Petrobras rising 4.5%, aided by stronger prices in iron ore and oil markets. The momentum was also driven by a renewed interest from foreign investors, as global investment strategies shifted away from US assets following milder statements from the US in Davos, resulting in fresh capital inflows into Brazilian equities.